Hong Kong Stocks Gain 1.3% In Asian Rally

Hong Kong shares closed with healthy gains on Monday as investors returned from a long weekend with hopes for a new US stimulus package and signs Donald Trump's health is improving after testing positive for coronavirus last week.

The Hang Seng Index rose 1.3 percent, to 23,767.

The markets on the mainland were closed for a public holiday.

Tokyo, Mumbai and Seoul soared 1 percent, while Sydney piled on more than 2 percent and Singapore 0.5 percent.

Taipei, Bangkok, Jakarta and Wellington were also in the green.

The more positive outlook for Trump's health lifted riskier assets, with higher-yielding currencies up against the US dollar, while key safe havens yen and gold retreated.

Oil majors Royal Dutch Shell, BP and Total rose nearly 2 percent, with crude prices climbing after an easing of the worst fears about Trump's health condition and an expanding workers' strike in Norway, Western Europe's largest oil producer.

Trump's doctors treating him for Covid-19 have said his health is improving and he could be sent back to the White House soon, although outside experts warn that his case may be severe.

"If he is recovering relatively well, that means stability because if it turns out that Trump gets ill and might not be able to run any campaign, that creates a lot of questions," said Teeuwe Mevissen, a senior macro strategist at Rabobank.

"But there are many other uncertainties hanging above markets," Mevissen said, pointing to a second wave of Covid-19 cases in Europe, Brexit risks and US-China trade tensions. (AFP, Reuters)