The Hang Seng Index ( HSI ) rose 1.4% in early trade, reaching above 1% for the first time since 19 August. The Tencent heavyweight index rose 2.1% after the Chinese Internet giant announced that it had spent $ 36.4 million ($ 4.6 million) to buy back shares on Tuesday. The company has been buying shares in the last five straight sessions.
WH Group – another component of Hang Seng, which is also the largest pork processor in the world – advanced 5.5% after Chinese officials pledged to step up government support for pig production to stabilize pork meat prices. The Chinese pig industry has been hit hard by the African swine fever epidemic.
Last month, Hang Seng registered a 7.4% decline ̵
1; one of the worst among major global indices. The index is weighed down by escalating trade tensions between the US and China, as well as intensifying protests in the city.
The Shanghai Composite Index in China ( SHCOMP ) was up 0.3%, as new data from China's services sector appeared promising. Activity improved in August at its strongest rate in three months, according to a private study conducted by Caixin / Markit.
"The Chinese economy showed clear signs of recovery in August, especially in the employment sector," Zhonegsheng Zhong writes,
He noted that the US-China trade war remains a difficult business, but added that the Chinese government is taking action to stimulate economic growth.  In other areas of Japan Nikkei 225 ( N225 ) was about flat. South Korea Kospi ( KOSPI ) increased 0.4%.
This followed a sour mood outside the US, where markets closed sharply lower on Tuesday after the holiday Monday. Investors were returning to the new US and Chinese tariffs that came into force over the weekend.
Here are some other talking points at 10:30 AM Hong Kong time:
- Hong Kong business activity has fallen most in August since late 2008, according to a survey of managers' index by shopping published Wednesday by IHS Markit. The data reveals a Hong Kong economy that is "flirting with the recession" as business activity "is increasingly aggravated by the paralysis protest," Bernard Au, chief economist at IHS Markit, wrote in a statement issued last week.
- The manufacturing sector in the US contracted for the first time in three years last month, according to a study by the Institute for Supply Management published on Tuesday.