HSI Gains As Markets Ignore Mainland Growth Dip

Hong Kong stocks ended with more gains on Monday on hopes China and the US are edging towards a trade deal, which overshadowed data showing the world's number two economy grew at its slowest rate for 28 years in 2018.

The Hang Seng Index rose 0.4 percent, to end at 27,196.

On the mainland, the Shanghai Composite Index added 0.6 percent, to close at 2,610 and the Shenzhen Composite Index climbed 0.6 percent, to 1,330.

Tokyo ended 0.3 percent stronger.

Sydney rose 0.2 percent, Singapore added 0.4 percent and Taipei put on 0.5 percent with Wellington and Jakarta also up.

Analysts think the latest data from the mainland reinforces the need for officials to press on with stimulus measures, such as the tax cuts announced last week and moves to make it easier for banks to lend.

"While the government is putting policy responses in place, we anticipate that these will need to be ramped up over the course of the year," Stephen Chang, portfolio manager for Asia at Pacific Investment Management, said in a note.

On the currency market, the pound held up despite the uncertainties surrounding Brexit continuing. The sterling traded at at US$1.2875 and HK$10.08 on Monday. (AFP)