Hong Kong Stocks Soar, Asian Markets Rally

Hong Kong stocks climbed more than 2 percent on Monday, in line with an Asia-wide rally, as Donald Trump dropped his planned tariffs on Mexico while Chinese export data came in above expectations.

The Hang Seng Index rose 2.3 percent, to 27,578.

On the mainland, the Shanghai Composite Index added 0.9 percent, to 2,852 and the Shenzhen Composite Index gained 1.3 percent, to 1,483.

Tokyo ended 2.2 percent higher, Singapore climbed 0.9 percent, Seoul added 1.3 percent and Taipei rallied 1.5 percent with Jakarta 1.4 percent higher. Wellington was slightly down and Sydney was closed for a public holiday.

Observers said the US-Mexico agreement was good news, but the stand-off between China and the United States remains unresolved, with eyes on a possible meeting between President Donald Trump and his Chinese counterpart Xi Jinping at the G20 summit in Japan this month.

"The focus will now shift back to the G20 and China," strategists at TD Securities including Richard Kelly wrote in a note. "Despite the positive result with Mexico, the US-China trade dispute is a different creature, and tensions remain high." (AFP)