Hong Kong Stocks Rise Amid Trade Row Worries

Shares bounced in Hong Kong and the mainland on Monday after suffering hefty losses at the end of last week, though traders remain on edge over the outlook for the global economy.

The Hang Seng Index in Hong Kong climbed almost 1 percent, to 28,503.

On the mainland, the Shanghai Composite Index added 1.9 percent, to 3,026.99, while the Shenzhen Composite Index rallied 3.9 percent, to 1,667.

Tokyo closed up 0.5 percent. Seoul and Taipei were slightly stronger but Sydney, Singapore, Manila and Wellington suffered fresh losses.

Traders are keeping a close eye on developments in the trade talks, with conflicting comments from both sides on the progress.

The two sides were thought to be readying for a Trump-Xi meeting at the end of March, but the US ambassador to China said Friday that they were not yet ready for a summit and deal signing.

The pound was unable to recover from last week's losses with Prime Minister Theresa May struggling to get the necessary revisions to her Brexit agreement that would be passed by MPs.

"With no further concessions... likely from the EU – and talks were described as being close to breaking down – Theresa May is now unlikely to present the changes required to win and the most probable scenario is that parliament then moves to vote on whether or not to exit the union without a deal, on Wednesday," said James Hughes, chief market analyst at AxiTrader.

However, he added: "That there will be a delay is currently the consensus expectation. How this will affect sterling pairs is anyone's guess. Over the last few months, anything that points to either a delay or Brexit not happening at all has led to the upside in the pound." (AFP)