Hong Kong Shares Gain, Asian Markets Mixed

Hong Kong shares ended on Monday morning with healthy gains following a record performance on Wall Street, with focus turning to the resumption of China-US trade talks this week.

The Hang Seng Index added 0.7 percent, to 29,819 by the break.

On the mainland, the Shanghai Composite Index lost 0.1 percent, to 3,083 while the

Shenzhen Composite index slipped 1.2 percent, to 1,645.

Japan's markets are closed for a week. Other regional markets were mixed as investors struggled to track another record lead from Wall Street.

Singapore added 0.8 percent, Seoul put on 0.7 percent and Wellington edged up 0.4 percent. But Sydney slipped 0.6 percent, while Taipei, Manila and Jakarta also fell.

Both main oil contracts extended losses after falling 3 percent on Friday after Donald Trump said Saudi Arabia and others in Opec had agreed to his request to boost production.

However, Stephen Innes at SPI Asset Management said he still saw prices rising.

"We still think Opec will be careful not to signal a rapid supply response to the Iran waivers, having a preference – regardless of President Trump's consternation – to let prices drift higher until demand side pressure starts to mount," he wrote in a note.

"The market has been tunnel [visioned] on Iran sanctions waivers, but we should not lose sight of the swamp in Venezuela nor the tenuous state of affairs in Libya as both these hotspots should continue to support oil prices." (AFP)

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