Hopes Of China-US Deal Boost Asian Markets

Hong Kong stocks jumped more than 1 percent in the morning session on Monday as investors grow increasingly optimistic that China and the United States will reach a trade deal.

The Hang Seng Index rose 1.5 percent, to 28,322 by the break.

On the mainland, the benchmark Shanghai Composite Index jumped 1.9 percent, to 2,732 and the Shenzhen Composite Index gained 2.4 percent, to 1,422.

Tokyo ended the morning session 1.8 percent higher.

Sydney put on 0.4 percent, Singapore and Seoul each gained 0.9 percent, Taipei jumped 1 percent and Wellington edged 0.2 percent higher.

Manila and Jakarta piled on more than 1 percent apiece.

The upbeat mood in Asia follows a strong lead from Wall Street, while a bipartisan deal to avert another US government shutdown and the Federal Reserve's recent dovish tone on interest rates have also provided support.

The positive news comes at a crucial time as China's economy stutters and the global outlook looks less certain, with the US also showing signs of slowing.

"With a weakening US economy, the motivation for both sides to get something agreed in the short term is quite high as they still debate the more structural issues that lurk in the background," Sunny Bangia, a global equities fund manager at Antipodes Partners, told Bloomberg TV. (AFP)

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