HK, Shanghai Gain On Stimulus Speculation

Hong Kong stocks ended Monday in positive territory as data showing another slowdown in Chinese economic growth fuelled speculation the government would introduce fresh stimulus measures.

The Hang Seng Index gained 0.3 percent, to close at 28,554.

On the mainland, the Shanghai Composite Index gained 0.4 percent, to 2,942 and the Shenzhen Composite Index gained 1 percent, to 1,572.

Observers pointed out that the growth rate weakness raised the chances of further monetary easing measures from the central People's Bank of China (PBOC), while investors were also tracking the progress of trade talks between Washington and Beijing.

"While the PBOC has already delivered stimulus this year, markets are awaiting a bazooka of (bank reserve ratio) cuts and additional measures, which will probably come if trade talks collapse," said Oanda senior market analyst Edward Moya.

"If talks steadily progress, we will still probably see the PBOC deliver fresh stimulus following the Fed's highly anticipated rate cut at the end of the month."

In other regional markets, Sydney dropped 0.7 percent and Wellington shed 0.3 percent. Singapore and Seoul were also down. Taipei was up.

Tokyo was closed for a holiday. (AFP)