Hong Kong Surges 1.4 Percent, Malaysian Stocks Up

Hong Kong stocks surged more than 1 percent on Monday, chalking up a sixth successive gain following another strong lead from Wall Street.

The Hang Seng Index rose 1.4 percent, to close at 31,541.

On the mainland, the benchmark Shanghai Composite Index added 0.3 percent, to 3,174 while the Shenzhen Composite Index eased 0.1 percent, to 1,823.

Most other Asian markets rose as investors built on last week's rally.

Malaysia's ringgit recovered from an early sell-off to sit flat while stocks were up more than 1 percent in Kuala Lumpur as trading resumed after last week's general election that saw a shock win for 92-year-old former premier Mahathir Mohamad.

While analysts had expected a sharp drop in equities, they said Mahathir had soothed many concerns by giving key posts to people seen as market-friendly.

Tokyo ended up 0.5 percent, with Fujifilm climbing 1.6 percent after US photocopier and printer maker Xerox pulled out of a US$6.1 billion merger deal. Analysts said the move was welcomed by traders who thought the deal was not good for Fujifilm.

Sydney added 0.3 percent and Wellington gained 0.4 percent while Taipei piled on 0.9 percent. However, Seoul and Singapore were slightly down.

On currency markets, the US dollar was mixed against its main peers but with US interest rates expected to rise at least twice more this year, analysts are tipping it to strengthen further. (AFP)