HSI Rises On Trade Talks Hope, HSBC Stocks Down

Hong Kong stocks rallied on Monday as investors were buoyed by reports that Beijing and Washington are close to agreeing a partial trade deal.

The Hang Seng Index finished 0.8 percent higher, to close at 26,891.

Regional markets were also positive after a strong show by Wall Street overnight, as investors were encouraged by solid company earnings reports and signs of progress in trade talks between China and the United States.

Shares of AIA jumped 3.7 percent following better-than-expected score card for the third quarter. Heavyweight Tencent reversed earlier losses and ended 1.7 percent higher.

But HSBC lost 2.3 percent after its quarterly profit came in worse than expected.

Across the border, investors piled into stocks linked to blockchain after President Xi Jinping said it's essential for the technology to play a bigger role in the country's development.

Dozens of tech shares soared by the 10 percent daily limit. The Shanghai Composite Index and the blue-chip CSI300 index gained around 0.8 percent. And the Shenzhen Composite index climbed 1.6 percent.

Elsewhere in the region, benchmark indices in Japan and South Korea each gained 0.3 percent. Australia was little changed. Taiwan edged up 0.2 percent and Singapore rose half a percent.

On the currency market, the pound was trading at HK$10.06.