Hong Kong Stocks Gain, Mainland Markets Slip

Hong Kong stocks ended up on Monday but gains were moderate ahead of the historic summit between Donald Trump and Kim Jong-un and following a tumultuous Group of Seven meeting.

The Hang Seng Index rose 0.3 percent, to 31,063.

On the mainland, the benchmark Shanghai Composite Index fell 0.5 percent, to 3,052 and the Shenzhen Composite Index lost 0.6 percent, to 1,741.

Asian markets mostly rose, with investors looking ahead to the summit in Singapore and key central bank decisions.

Tokyo ended 0.5 percent up and Seoul gained 0.8 percent. Singapore, Wellington and Manila also rose, while Taipei was flat.

Sydney was closed for a public holiday.

Tai Hui, JP Morgan Asset Management chief market strategist for Asia-Pacific, said in a note: "Although the... summit in Singapore is capturing public attention, the direct impact on markets is likely to be limited."

"Ongoing dialogue between Washington and Pyongyang is positive, since this implies military action is on hold, limiting any economic implication for South Korea and surrounding region. Investors will hope to see steady progress with opportunities for more discussion in coming months."

This week is also expected to see the Federal Reserve lift interest rates again, and traders will be poring over its post-meeting statement for an idea about future moves. (AFP)