US Jobs Data Lifts Hong Kong, Regional Markets

Hong Kong stocks surged more than 1 percent in the morning on Monday, in line with a rally on Wall Street and across Asia following a strong US jobs report.

The Hang Seng Index jumped 1.3 percent, to 30,889.

Investors were cheered by data on Friday showing that US unemployment rate fell to 3.8 percent in May, its lowest level in 18 years.

On the mainland, the Shanghai Composite Index gained 0.2 percent to 3,081, while the Shenzhen Composite Index was flat at 1,746.

Tokyo ended the morning session 1.3 percent higher, while Sydney rose 0.7 percent, Seoul gained 0.4 percent and Taipei put on more than 1 percent.

The US dollar also built on Friday's surge against the yen as the strong jobs report also lifted expectations for another interest rate hike by the Federal Reserve next week.

The euro held its gains after Italy's populist parties agreed to form a government, ending days of uncertainty that had fuelled fears of another election that would essentially be considered a referendum on its euro future. (AFP)

______________________________