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%.