Hong Kong, Mainland Markets Join Asian Rally

Hong Kong traders went into the break on a positive note Monday, with stocks joining a broad rally across Asia and extending last week's gains.

The Hang Seng Index added 0.6 percent, to 31,459.

On the mainland, the Shanghai Composite Index rose 0.7 percent to 3,312, while the Shenzhen Composite Index exchange, climbed 1.7 percent to 1,805.

Shares of mainland car-maker, Geely, jumped as much as 8.8 percent during initial Hong Kong trading after it was revealed the company has become the biggest shareholder of Mercedes-Benz owner Daimler.

The mainland company has bought US$9 billion worth of shares in Daimler – an almost 10-percent stake. The mainland company, which already owns Volvo Cars and Lotus, is said to be hoping to tap into Daimler's electric battery technology.

Most other Asian markets picked up on Monday where they left off last week, with gains across the board as investors tracked a healthy lead from Wall Street.

Tokyo ended the morning 0.8 percent higher and Sydney climbed 0.5 percent. Seoul edged up 0.2 percent and Singapore put on 0.4 percent.

Wellington and Taipei were also up. (AFP)

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