Jittery Hong Kong Falls, Sydney And Mumbai Soar

Hong Kong stocks suffered another sell-off on Monday as concerns about the rumbling China-US trade war overshadowed a broad advance across most of Asia.

The Hang Seng Index fell 0.6 percent, to 27,787.

On the mainland, the Shanghai Composite Index ended 0.4 percent, down at 2,870, while the Shenzhen Composite Index lost 0.8 percent, to 1,521.

Tokyo ended 0.2 percent higher, with traders taking heart from news that the Japanese economy expanded more than expected in the first quarter and improved slightly from the previous three months.

Sydney 1.7 percent higher following the surprise victory of Prime Minister Scott Morrison's Liberal-National coalition in weekend elections. The Aussie dollar also enjoyed support, climbing 0.7 percent against the greenback.

Mumbai piled on more than 2 percent and the rupee jumped 1 percent as polls indicated Modi's Bharatiya Janata Party (BJP) and its National Democratic Alliance would win a general election that concluded Sunday.

"The markets should see continuity and potential for reforms and foreigners are likely to be net buyers" of stocks, said Jean-Charles Sambor, at BNP Paribas Asset Management. "We see India as being under-owned."

Wellington added 0.5 percent and Taipei was 0.1 percent higher, with Jakarta one percent up and Manila 0.6 percent stronger.

The pound continued to struggle after the Labour opposition walked out of talks with Prime Minister Theresa May that were aimed at reaching a deal to leave the EU.

Still, Oanda senior market analyst Jeffrey Halley looked on the bright side.

"With so much lost hope factored into the pound in the short-term – and given Australia has just proved political miracles can happen – a Theresa May rabbit from the hat could set the pound up for a mighty rebound," he said in a note. (AFP)