Hang Seng Opens Higher, Shanghai Flat

The local stock market rose in early trade as investors returned from a long weekend to news that China-US talks were back on, though gains were tempered after the city was hit by violent protests overnight.

The Hang Seng Index jumped 0.82 percent, or 234 points, to 28,776.

On the mainland the Shanghai and Shenzhen Composite indices opened flat at 3,042 and 1,5615.

Tokyo also opened flat on profit-taking, after rallying more than two percent in the previous session on news that the US and China had struck a trade war truce.

The Nikkei 225 was down 0.05 percent, or 11.65 points, at 21,718 in early trade, while the broader Topix index rose 0.11 percent, or 1 points, at 1,586.62.

Japanese shares climbed to their highest levels since early May "as investors took heart from the US-China summit talks, but profit-taking is seen weighing on the market," Okasan Online Securities' chief strategist Yoshihiro Ito said in a commentary.

The dollar fetched 108.39 yen in early Asian trade, against 108.44 yen.

Global stock markets rose Monday after presidents Donald Trump and Xi Jinping agreed on the sidelines of the weekend Group of 20 summit to resume trade negotiations towards a long-term deal.

Ito said that after a knee-jerk reaction, "the market interpreted the news as showing the situation has merely returned to one from a few months ago," and there remains a risk of a breakdown in negotiations.

In Tokyo, automakers were among the losers, with Toyota trading down 0.36 percent at 6,849 yen, Honda lower by 0.86 percent at 2,820.5 yen and Nissan off 1.32 percent at 779.1 yen.

Electronics were mixed, with Panasonic down 0.29 percent at 920.9 yen while Sharp was up 0.40 percent at 1,226 yen.

On Wall Street, the Dow ended up 0.4 percent at 26,717. (AFP)