Hong Kong, Shanghai Markets Rise On 'trade Deal'

Hong Kong shares went into the break with gains of more than 1 percent on Monday after China and the United States reached a partial trade deal that will see Washington hold off imposing fresh tariffs this week.

The Hang Seng index added over 1 percent, to 26,578.

On the mainland, the Shanghai Composite Index rose 1.4 percent, to 3,014 while the Shenzhen Composite Index added 1.4 percent, to 1,660.

Most other regional markets rose, though observers were sceptical about the overall significance of the China-US agreement.

Sydney gained 0.7 percent and Singapore put on 0.4 percent, while Wellington, Taipei and Seoul also rallied more than 1 percent. Manila and Jakarta saw healthy advances.

Japan's markets are closed for a public holiday.

However, while traders welcomed the deal was welcomed by Trump as "the greatest and biggest deal ever made for our Great Patriot Farmers in the history of our Country", analysts were a little more guarded.

"Let's not get carried away," Raoul Leering, head of international trade research at ING Bank NV, told Bloomberg News. "There is a very tough journey ahead for the US and Chinese negotiators to cut a deal that really has substance."

Tai Hui, chief market strategist for Asia at JP Morgan Asset Management, warned that "market optimism may not be well supported by economic reality".

He added: "While we are still waiting on the details on concessions made by both sides, it seems these are still the low-hanging fruits that Beijing has offered in the past." (AFP)

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