Summit Talks Boost Asian Markets, HSI Gains

Hong Kong stocks finished higher on Monday, with buying fuelled by hopes that Donald Trump's summit with North Korean leader Kim Jong-un will go ahead next month.

The Hang Seng Index rose 0.7 percent, to 30,792.

On the mainland, the Shanghai Composite Index eased 0.2 percent, to 3,135 and the Shenzhen Composite Index lost 0.2 percent, to 1,806.

Most of the markets fell in Asia on Friday after Trump said he had pulled out of the June 12 gathering, citing "open hostility" from Pyongyang. However, a flurry of diplomacy – led by South Korea, whose President Moon Jae-in met Kim on Saturday – has put it back on track.

Tokyo finished 0.1 percent higher and Singapore put on 0.4 percent, while Seoul rallied 0.7 percent.

Wellington, Jakarta and Taipei were also up but Sydney slipped 0.5 percent.

On currency markets, the euro edged up despite political uncertainty in Italy, with investors welcoming news that President Sergio Mattarella had vetoed the nomination of fierce eurosceptic Paolo Savona as economy minister.

Oil prices extended losses after Saudi Arabia and Russia signalled they could raise output, pulling down energy stocks.

CNOOC lost 1.2 percent in Hong Kong, but Sinopec rebounded in the afternoon and PetroChina surged more than 5 percent, boosted by news that the mainland authorities had given firms freedom to raise and lower gas prices based on supply and demand. (AFP)