Hong Kong Market Extends Loss, Shanghai Gains

A late sell-off saw Hong Kong stocks end in the red again on Monday, extending losses after diving more than 9 percent last week, with analysts warning of further volatility.

The Hang Seng Index slipped 0.2 percent, to close at 29,459.

On the mainland, the Shanghai Composite Index rose 0.8 percent, to 3,154 while the Shenzhen Composite Index jumped 2.7 percent, to 1,723.

Most other Asian markets rose as buyers cautiously returned after last week's global rout, with confidence boosted by a rally on Wall Street.

Seoul gained 0.9 percent, with traders cheered by signs of a thaw in relations between North and South Korea during the Winter Olympics after Kim Jong-un – whose sister attended the opening ceremony in Pyeongchang – invited the South's President Moon Jae-in for a summit in Pyongyang.

Singapore rose 0.6 percent, Taipei added 0.5 percent and Bangkok 0.3 gained percent but Sydney eased 0.3 percent and Manila dipped 0.5 percent. Tokyo was closed for a public holiday.

However, there are expectations that profit-taking will lead to further losses, with Brian Culpepper at James Investment Research warning: "Stocks are extremely expensive."

Eyes are now on the release this week of US inflation figures, which market-watchers say will be key to future movements. (AFP)