HSI Continues Climb As Asian Stock Markets Rally

Shares rallied on Monday in Hong Kong after China and the United States announced a partial trade deal that eased tensions between the economic superpowers.

The Hang Seng Index jumped 0.8 percent, to 26,521, marking a third straight advance.

On the mainland, the Shanghai Composite Index climbed 1.2 percent, to 3,007 while the Shenzhen Composite Index jumped 1.4 percent, to 1,660.

Sydney and Singapore both put on 0.5 percent, while Taipei and Seoul also rallied more than one percent. Wellington, Mumbai, Manila and Jakarta saw healthy advances.

Tai Hui, chief market strategist for Asia at JP Morgan Asset Management, warned that "market optimism may not be well supported by economic reality".

He added: "While we are still waiting on the details on concessions made by both sides, it seems these are still the low-hanging fruits that Beijing has offered in the past.

"Some of the more challenging issues, such as the US blacklisting of Chinese tech companies and possible limits on US institutional investors investing in Chinese equities, don't seem to be on the agenda."

On currency markets, the US dollar dipped against most higher-yielding, riskier units owing to improved optimism.

The pound, however, was suffering selling pressure after European leaders appeared unmoved by a hailed Brexit breakthrough on the Northern Irish question between the leaders of Britain and Ireland. (AFP)