HK Stocks Soar As Trump's Actions Fall Short

Hong Kong stocks surged more than 3 percent on Monday morning after Donald Trump fell short of imposing strict sanctions on China over Beijing's decision to push a controversial security law in the city.

The Hang Seng Index jumped 3.2 percent, nearly 750 points, to 23,701.

On the mainland, the Shanghai Composite Index climbed 2 percent to 2,908, while the Shenzhen Composite Index soared 2.8 percent, to 1,837.

Tokyo went into the break 1.2 percent higher, while Seoul, Taipei and Singapore were also more than 1 percent higher. Sydney gained 0.7 percent.

Dealers had sold up ahead of a news conference Trump called regarding China's plan for a new security law in Hong Kong but his actions were not as severe as feared.

The president said he would strip several of the city's special privileges and bar some Chinese students from US universities, and he ordered probes into Chinese companies listed on US financial markets.

"Importantly... there were no new tariffs or broad sanctions, with the phase one trade deal intact, with the outcome less feared," said National Australia Bank's Tapas Strickland.

"Some are drawing the link between President Trump's need for agricultural buys to shore up the Midwest ahead of the November presidential elections." (AFP)

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