HSI Gains, European Rally Aids Asian Markets

Hong Kong stocks rose on Tuesday, tracking gains in European markets overnight as investors expressed relief that centrists had retained control of the European parliament after weekend elections.

The Hang Seng Index edged up 0.4 percent, to 27,390.

On the mainland, the Shanghai Composite Index ended 0.6 percent higher, at 2,909 while the Shenzhen Composite Index gained 0.5 percent, to close at 1,541.

Tokyo closed 0.4 percent higher, while Seoul also inched up 0.2 percent but Singapore lost 0.1 percent.

A positive performance by European shares overnight helped the markets as investors breathed a sigh of relief over populists' failure to take over the European parliament after weekend elections.

The gains in Europe prompted a solid opening for Tokyo, with US President Donald Trump taking a softer approach in Washington's trade dispute with Japan as he wrapped up his visit to the Asian ally.

"Against the backdrop of a lack of reaction towards President Donald Trump's words and the vacuum of leads, Asia markets look to trade to its own tune from a mixed but muted start to Tuesday," said Jingyi Pan, market strategist at IG in Singapore.

Trading in oil saw modest rises after prices plunged last week following a surprise increase in US crude and gasoline inventories.

Analysts said prices would likely extend a comeback despite jitters over the US-China trade war discouraging future demand.

"With the summer driving season beginning in the US, demand is expected to pick up and with hurricane season expected to be near-normal, oil prices should see some support shortly," said Oanda senior market analyst Edward Moya. (AFP, AP)