HSI Rises As New Security Law Comes Into Effect

Hong Kong shares closed with gains on Tuesday following a rally in New York as traders welcomed upbeat economic data, though they remained cautious after Beijing passed a controversial security law for the city.

The Hang Seng Index added 0.5 percent, to 24,427.

On the mainland, the Shanghai Composite Index rose 0.8 percent, to 2,984 while the Shenzhen Composite Index jumped 1.9 percent, to 1,975.

Tokyo, Sydney, Wellington, Manila and Bangkok were all more than 1 percent higher. There were also healthy gains in Singapore, Mumbai and Taipei.

Traders were keeping a nervous eye on Wednesday's anniversary of the handover to China, fearing fresh clashes as Beijing passed a controversial security law banning subversion, secession and terrorism that critics fear will demolish the business hub's cherished political freedoms.

On Monday, the White House ended sensitive defence exports to Hong Kong, while the Commerce Department simultaneously said it was revoking its special status for Hong Kong.

It will now treat the financial hub the same as China for so-called dual-use exports that have both military and civilian applications – and which are highly restricted when sought by Beijing. The move led China to say it would take "countermeasures". (AFP)