Hong Kong stocks stand out with surge as Asia markets rally

Asian markets rose Wednesday, led by a surge in Hong Kong after reports said the city's leader was considering agreeing to a key demand of pro-democracy protesters, fuelling hopes for an end to months of damaging protests in the financial hub.

Shares rallied across the board on the Hang Seng Index after the reports, with property and retail firms among the best performers, having taken a hiding over the past few weeks as the demonstrations were increasingly dogged by violence.

Chief Executive Carrie Lam and Beijing have refused to make any concessions to the protesters beyond agreeing to suspend a loathed extradition bill, a move that fell far short of demands to permanently shelve it.

But one pro-establishment lawmaker who asked to remain anonymous told AFP their camp was being summoned to meet Lam on Wednesday afternoon ahead of an expected major announcement.

Multiple news organisations later said Lam would announce a full withdrawal of the bill later in the afternoon.

"The withdrawal is a sign of an inflection point in the 13-week-long crisis," Justin Tang, head of Asian research at United First Partners, said.

"Retail and property stock investors are signalling their optimism and putting their money where it matters."