Headline indices of the Hong Kong financial market closed slight higher on Wednesday, 30 January 2019, in volatile trade following small gains of the Dow overnight as investors were in a cautious mood ahead of the outcome of the U.S. Federal Reserve's two-day policy-setting meeting. At closing bell, the Hang Seng Index added 111.17 points or 0.2% to 27,642.85. The Hang Seng China Enterprises Index rose 29.71 points or 0.27% to 10,897.13.

All eyes are on a Federal Open Market Committee meeting ending Wednesday. Although the Fed is expected to leave its short-term interest rate unchanged, the nuances of a press conference by Chairman Jerome Powell will be closely watched. Ahead of the start of the two-day FOMC meeting, speculation grew that Fed policymakers would discuss slowing or ending the U.S. central bank's move to shrink its balance sheet.

Top US and Chinese trade officials return to the bargaining table on Wednesday, with extra tension in the atmosphere amid Washington's sweeping prosecution of Chinese telecoms giant Huawei. resident Donald Trump will reportedly meet Chinese Vice Premier Liu He in an attempt to move negotiations forward. But the Justice Department's charges against Chinese tech giant Huawei, its subsidiaries and a top company executive may be a hurdle. China has urged U.S. authorities to end what it called an unreasonable crackdown against Huawei, which has been accused of stealing technology and violating sanctions on Iran.

The world's two largest economies are battling for nothing less than future dominance in critical high-tech industries, according to US Trade Representative Robert Lighthizer, the lead US negotiator. A little over three years ago, Beijing launched a strategic plan dubbed Made in China 2025 that aimed to make the nation the global leader in aerospace, robotics, artificial intelligence, new-generation autos and other areas -- sectors US officials say now represent the crown jewels of American technology and innovation. US President Donald Trump has repeatedly said he favors a healthy Chinese economy but not at the expense of American business and know-how. In specific, US officials are attacking Chinese trade practices they say are unfair, spotlighting the forced transfer of American technology through requirements that foreign companies form joint ventures with local firms, as well as the alleged theft of American intellectual property through hacking. To pressure Beijing, the White House has slapped tariffs on $250 billion in Chinese imports. And Trump is poised to more than double US duty rates on $200 billion in goods from China to 25% on March 2 should the talks fail. Beijing has responded by slapping duties on virtually every product it buys from the United States, or about $110 billion in exports. Given the complexity of issues, a finished agreement is unlikely to emerge from the two days of talks in Washington this week. But US Treasury Secretary Steven Mnuchin said Tuesday he expected significant progress, and noted the governments have another month left in the 90-day truce declared in December.

Blue chips were mostly firmer. HSBC (00005) edged up 0.5% to HK$66.3. HKEX (00388) nudged down 0.3% to HK$241.2. AIA (01299) inched up 0.3% to HK$68.85. Tencent (00700) added 0.5% to HK$344.2. China Mobile (00941) gained 0.7% to HK$82.55.

China Life (02628) slipped 1.9% to HK$18.9 after it issued a profit warning yesterday. But other insurers were mixed. Ping An (02318) rose 0.6% to HK$73.95. CPIC (02601) dipped 1.7% to HK$26.6. NCI (01336) dropped 0.8% to HK$30.35. China Taiping (00966) dipped 2.4% to HK$20.3.

Developers were higher as market consensus expect no rate hike this month. Hang Lung Properties (00101) climbed 1.1% to HK$16.84 after it reported 2018 net declined 1%. Sun Hung Kai Properties (00016) rose 0.9% to HK$130.8. Henderson Land Development (00012) put on 0.8% to HK$44.3. New World Development (00017) advanced 1.2% to HK$12.02. CK Asset (01113) was up 0.2% to HK$65.4.

Oil prices bounced 2% overnight but oil majors were mixed. CNOOC (00883) gained 1.3% to HK$12.8. Sinopec (00386) mounted 2.5% to HK$6.58. But PetroChina (00857) was unchanged at HK$4.98.