Return Of Calm Boosts HK Stock Market

Hong Kong stocks finished the morning session with gains on Monday as investors cheered a decision by the city's government to suspend plans for a controversial extradition law that had fuelled concerns about doing businesses there.

The Hang Seng Index rose 0.7 percent, to 27,298 by the break.

On the mainland, the Shanghai Composite Index gave up its some early gains and was flat at noon, at 2,880 and the Shenzhen Composite Index was down 0.5 percent, to 1,497.

Most other Asian stocks were higher. Japan's benchmark Nikkei 225 gained 0.3 percent in the morning trading, and South Korea's Kospi edged up nearly 0.2 percent, but Australia's S&P/ASX 200 lost 0.3 percent.

Market watchers are also closely watching the results of the G20 summit in late June, where President Xi Jinping and US President Donald Trump could meet and try to negotiate a deal on trade.

"Sentiments around the ability to achieve a positive turn in US-China trade negotiations, should the Trump-Xi meeting materialise at the sidelines of the G20, remain tentative," said Vishnu Varathan of Mizuho Bank in Singapore. (AFP)

______________________________