Hong Kong stocks near 3-week high on trade hopes, Trump's Fed assurance

SHANGHAI, April 23 (Reuters) - Hong Kong shares climbed to a near three-week peak on Wednesday, tracking global peers higher, amid optimism over potential de-escalation in Sino-U.S. trade tensions and U.S. President Donald Trump's assurance that he won't fire Federal Reserve chief.

** Mainland Chinese shares also gained in morning trade.

** By midday break, Hong Kong's benchmark Hang Seng Index .HSI was up 2.41% at 22,081.42 points, its highest point since April 3.

** The Hang Seng China Enterprises Index .HSCE jumped 2.15%, while the Hang Seng Tech Index .HSTECH surged 3.11%.

** Market sentiment stabilised "following a more conciliatory tone from President Trump and rising hopes of de-escalation in the U.S.-China trade tensions," analysts at OCBC said in note.

** During a question-and-answer volley with reporters on Tuesday, Trump expressed optimism that a trade deal with China could "substantially" cut tariffs.

** U.S. Treasury Secretary Scott Bessent said that he believes there will be a de-escalation in U.S.-China trade tensions, but negotiations with Beijing have not yet started and would be a "slog."

** Trump also backed off from threats to fire Fed Chair Jerome Powell after days of intensifying criticisms of the central bank chief for not cutting interest rates.

** However, in onshore markets, gains in A shares were rather muted as investors remained wary of fast-changing tariff developments and huge uncertainty around the prospects of bilateral trade relations with the United States.

** At the midday break, the Shanghai Composite index .SSEC was up 0.04% at 3,301.01 points, while the blue-chip CSI300 index .CSI300 was up 0.22%.

** Chinese exports have held up well, but Commerzbank economists warn the momentum may soon wane.

** "We think that any deal between China and the U.S. that will result in lower tariffs is unlikely to happen any time soon," Commerzbank economists said in a note.

"In the short term, it will be difficult for U.S. companies to find substitutes for Chinese intermediate inputs. However, supply chains will likely adjust to a certain extent over time."

** Across the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS advanced 1.87%, while Japan's Nikkei index .N225 gained 2.10%.