Hong Kong, Shanghai Rise On Trade Talks Hope

Hong Kong shares ended the morning more than 1 percent higher on Monday, fuelled by increasing optimism that China and the US will sign a deal resolving their trade war.

The Hang Seng Index climbed 1.2 percent, to 29,147 by the break.

On the mainland, the Shanghai Composite Index rose 0.9 percent, to 3,019 while the Shenzhen Composite Index rallied just over 2 percent, to 1,596.

Tokyo's benchmark Nikkei index gained more than 1 percent, with a cheaper yen also supporting the market.

The Nikkei 225 index added 219 points, to close at 21,822.

"The market is still cautious about the fate of the negotiations but the current risk-on sentiment sustained downside support solidly," said Toshikazu Horiuchi, a broker at IwaiCosmo Securities.

"Also the current levels of the yen are good for Japanese exporters, boosting market sentiment," said Horiuchi. (AFP)

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