Hong Kong, Mainland Shares Start Week On A High

Hong Kong, mainland and other Asian markets rallied on Monday, building on last week's healthy gains with investors buoyed by optimism over China-US trade talks and forecast-busting Chinese factory data.

Top negotiators from China and the US flagged progress in last week's discussions in Beijing on the tariffs row, with another round slated for this week in Washington.

While there have been few details, the general view on trading floors is that the economic superpowers are heading towards a deal that will end a long-running spat that helped sink global markets towards the end of last year.

The Hang Seng Index rallied 1.8 percent, or 510 points, to close at 29,562.

The benchmark Shanghai Composite Index surged 2.6 percent, or 79 points, to 3,170 and the Shenzhen Composite Index climbed 3.6 percent, or 60 points, to 1,755.

Tokyo ended 1.4 percent higher, Singapore jumped 0.9 percent and Seoul piled on 1.3 percent, with Taipei, Mumbai, Bangkok, Jakarta and Wellington also in the green.

The rises were supported by a sharp jump in an index of Chinese manufacturing activity, which soothed concerns about the world's number two economy and a key driver of the global economy. (AFP)