Foreign investors poured money into the Chinese A-share market on Friday with the daily purchase amount via the stock connect programme hitting a record high. Traders added 22.4 billion yuan ($3.1 billion) of mainland stocks on a net basis using the links with Hong Kong on Friday.

At closing bell, the benchmark Hang Seng Index surged 366.61 points, or 2.12%, to 17,651.15. The Hang Seng China Enterprises Index added 149.39 points, or 2.44%, to 6,269.76.

Among blue chips, CNOOC jumped 3.6% to HK$19.68 after China?s biggest offshore oil producer reported a 24% rise in first quarter earnings from a year ago. Tencent jumped 2.7% to HK$348.40, while food delivery giant Meituan surged 3.7% to HK$115.60 in heavy trade.

Foreign investors poured money into the Chinese A-share market on Friday with the daily purchase amount via the stock connect programme hitting a record high. Traders added 22.4 billion yuan ($3.1 billion) of mainland stocks on a net basis using the links with Hong Kong on Friday.

At close of trade, the benchmark Shanghai Composite index advanced 1.17%, or 35.74 points, to 3,088.64. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 1.78%, or 30.16 points, to 1,728.49. The blue-chip CSI300 index climbed up 1.53%, or 53.99 points, to 3,584.27.

CURRENCY NEWS: China's yuan hovered near a five-month low against the dollar on Friday, despite firmer mid-point fixing, weighed down by rising U.S. treasury yields. Prior to the market's opening, the People's Bank of China set the midpoint rate at 7.1056 per U.S. dollar, firmer than the previous fix of 7.1058. The onshore yuan opened at 7.2409 per dollar and was changing hands at 7.2464 at midday, 0.09% softer than the previous late session close and 1.98% away from the midpoint.

Australia stock market finished session sharply lower in post-holiday trading on Friday, 26 April 2024, following the broadly negative cues from Wall Street overnight. All ASX200 sectors declined, with shares in materials, realty, telecom, financial, and materials leading declines.

At closing bell, the benchmark S&P/ASX200 index fell 107.91 points, or 1.39%, to 7,575.91. The broader All Ordinaries index was down 100.12 points, or 1.26%, to 7,837.39.

All 11 sectors ended lower along with the S&P/ASX 200 Index. Industrial was the worst performing sector, falling 2.2%, followed by A-REIT (down 1.93%), telecommunication services (down 1.85%) sectors.

The bottom performing stocks in S&P/ASX200 index were MAGELLAN FINANCIAL GROUP and BOSS ENERGY, down 5.13% and 4.99% respectively. The top performing stocks in S&P/ASX200 index were NEWMONT CORP and RESMED INC, down 13.86% and 9.6% respectively.

Shares of gold miner Newmont soared 13.9% after the company revealed that Canada?s Lundin Gold had agreed to buy out 100% of the balance of a stream credit facility agreement and offtake agreement for its Fruta del Norte gold mine in Ecuador for $US330 million ($505 million). Newmont still holds a 31% equity interest in Lundin, adding that the deal is part of its efforts to monetise non-core assets following its acquisition of Newcrest in 2023. The company also said it realised an average gold price of US$2090 (A$3203) an ounce in the March quarter, compared with US$1906 (A$2921) an ounce in the previous quarter, providing further impetus for its stock.

Shares of Healthcare giant ResMed surged 9.6% following its March quarterly earnings report that showed profit rose 29% to US$300.5 million (A$460 million), a 29% increase year-on-year.

The 225-issue Nikkei Stock Average index advanced by 306.28 points, or 0.81%, to finish at 37,934.76. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose by 22.95 points, 0.86%, to 2,686.48.

Total 30 of 33 TSE sectors closed higher, with Marine Transportation sector being top performer in%age term, rising 2.47%, followed by Real Estate (up 2.26%), Pharmaceutical (up 2%), and Insurance (up 1.96%) sectors, while Chemicals issue was bottom performer, falling 1.04%.

Daiichi Sankyo jumped 5.12% to 5,010 yen after the drugmaker announced a share buyback and an increase in dividend payments.

Honda closed up 0.26% to 1,750 yen after it announced an investment in Canada worth Can$15 billion (US$11 billion) for a new EV battery and vehicle assembly plant.

ECONOMIC NEWS: Bank of Japan Keeps Rates Unchanged, Raises Inflation Forecast- The Bank of Japan (BoJ) maintained its key short-term interest rate at around 0% to 0.1% in April, following its first rate hike since 2007 in March. The central bank also committed to continuing bond purchases, aligning with its March decision. In its quarterly outlook, the BoJ raised its CPI forecast for FY 2024 to 2.8% from 2.4% due to diminishing effects of higher import prices. The board anticipates core inflation to reach 1.9% in 2025, up from earlier estimates of 1.8%, citing a recent uptick in oil prices. However, the BoJ reduced its GDP growth forecast for 2023 to 1.3% from 1.8% and for FY 2024 to 0.8% from 1.2%, primarily due to lower private consumption.

CURRENCY NEWS: The Japanese yen slid to fresh 34-year lows at 156.22 per greenback before easing to 156.01 yen in late Tokyo hours.

Market declines led by shares of communication services sector after Meta Platforms provided disappointing second quarter revenue guidance and IBM Corp reported weaker than expected first quarter revenues.

At closing bell, the Dow Jones Industrial Average index was down 375.12 points, or 0.98%, to 38,085.80. The S&P500 index declined 23.21 points, or 0.46%, to 5,048.42. The tech-heavy Nasdaq Composite index decreased by 100.99 points, or 0.64%, to 15,611.76.

Total 6 of 11 S&P500 sectors closed lower along with S&P500 index, with communication services sector being bottom performer, falling 4.02%, while material sector was top performer, rising 0.93%.

Among individual stocks, Meta Platforms shares fell 10.6% after the company provided disappointing second quarter revenue guidance despite first quarter results that beat estimates on both the top and bottom lines.

IBM Corp shares fell 8.3% after reporting weaker than expected first quarter revenues. IBM also announced a deal to acquire HashiCorp (HCP) for $35 per share in cash, representing an enterprise value of $6.4 billion.

ECONOMIC NEWS: US GDP Growth Slows To 1.6% In Q1- A report released by the Commerce Department on Thursday showed the U.S. economy grew by much less than expected in the first quarter of 2024. The Commerce Department said gross domestic product increased by 1.6% in the first quarter after surging by 3.4% in the fourth quarter of 2023. The GDP growth in the first quarter reflected increases in consumer spending, residential fixed investment, nonresidential fixed investment, and state and local government spending. However, the positive contributions were partly offset by a decrease in private inventory investment and an increase in imports, which are a subtraction in the calculation of GDP. The Commerce Department said the notable slowdown in GDP growth compared to the previous quarter primarily reflected decelerations in consumer spending, exports, and state and local government spending and a downturn in federal government spending. The report showed consumer spending growth slowed to 2.5% in the first quarter from 3.3% in the fourth quarter, with an increase in spending services partly offset by a decrease in spending on goods. On the inflation front, the Commerce Department said the personal consumption expenditures price index surged 3.4% in the first quarter after advancing by 1.8% in the fourth quarter. Excluding food and energy prices, the PCE price index spiked 3.7% in the first quarter after jumping by 2.0% in the fourth quarter.

US Wholesales Inventories Down 2.1% On Year In March- The U.S. Census Bureau announced the wholesale inventories and retail inventories advance statistics for March 2024. Wholesale inventories for March were estimated at an end-of-month level of $896.2 billion, down 0.4% from February 2024, and were down 2.1% from March 2023. The January 2024 to February 2024%age change was revised from the preliminary estimate of up 0.5% to up 0.4%. Retail inventories for March were estimated at an end-of-month level of $788.1 billion, up 0.3% from February 2024, and were up 4.4% from March 2023. The January 2024 to February 2024%age change was unrevised from the estimate of up 0.5%.

US Trade Deficit At $91.8 Billion In March- The U.S. Census Bureau announced the international trade advance statistics for March 2024. The international trade deficit was $91.8 billion in March, up $1.5 billion from $90.3 billion in February. Exports of goods for March were $169.2 billion, $6.1 billion less than February exports. Imports of goods for March were $261.0 billion, $4.6 billion less than February imports.

US Pending Home Sales Surge 3.4% In March- Pending home sales in the U.S. surged by much more than expected in the month of March, according to a report released by the National Association of Realtors on Thursday. NAR said its pending home sales index spiked by 3.4% to 78.2 in March after jumping by 1.6% to 75.6 in February. A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale. Pending home sales in the South and West led the sharp monthly increase, soaring by 7.0% and 6.8%, respectively. The report said pending home sales in the Northeast also jumped by 2.7%, while pending home sales in the Midwest plunged by 4.3%. NAR also revealed it expects existing sales to surge by 9.0% to 4.46 million in 2024 and skyrocket by another 13.2% to 5.05 million in 2025.

US Weekly Jobless Claims Dip To Two-Month Low- The Labor Department released a report on Thursday showing an unexpected decrease by first-time claims for U.S. unemployment benefits in the week ended April 20th. The report said initial jobless claims fell to 207,000, a decrease of 5,000 from the previous week's unrevised level of 212,000. With the unexpected decline, jobless claims dropped to their lowest level since hitting 200,000 in the week ended February 17th. The Labor Department said the less volatile four-week moving average also edged down to 213,250, a decrease of 1,250 from the previous week's unrevised average of 214,500. Continuing claims, a reading on the number of people receiving ongoing unemployment assistance, also slid by 15,000 to 1.781 million in the week ended April 13th. The four-week moving average of continuing claims also fell to 1,794,000, a decrease of 7,250 from the previous week's revised average of 1,801,250.

At closing bell, the Straits Times Index (STI) index fell 5.38 points, or 0.16% to 3,287.75 after trading between 3,249.01 and 3,290.01. Volume of 1.50 billion shares worth S$1.19 billion changed hands. Across the broader market, decliners outpaced advancers with 311 to 271.

Seatrium was the top constituent gainer for the day, rising 2.32% to S$0.88. Keppel was the top decliner on the STI for the day, down 3.51% to S$6.86.

Banking stocks ended the day mixed, with Oversea-Chinese Banking Corp rising 1.27% at S$14.33 and DBS Group Holdings gaining 0.2% to S$34.45, while United Overseas Bank fell 2% at S$30.52

Goldman Sachs' forecasted a potential surge of up to 40% for Chinese shares if the country introduces reforms for corporate governance, dividend distributions and institutional ownership. The bullish outlook follows UBS' upgrade on Chinese stocks to overweight, citing competent corporate earnings and fiscal support as the major factors for the upgraded index.

Adding to the positive sentiment is the China Securities Regulatory Commission's commitment to expanding the stock connect cross-border investment scheme in Hong Kong, a step in boosting the city's status as an international financial center.

Global investors have increased their allocation to China, dialling back their bearish bets on the market, while cutting exposures to Taiwan and India, according to HSBC Holdings.

At closing bell, the benchmark Hang Seng Index jumped 83.27 points, or 0.48%, to 17,284.54. The Hang Seng China Enterprises Index added 20.15 points, or 0.33%, to 6,120.37.

Among blue chips, Property developer China Overseas Land and Investment jumped 6.3% to HK$12.90 after posting a surprise 22% increase in operating profit in the first quarter. Hong Kong Exchanges and Clearing added 3.3% to HK$246.80, rising for a second day after profit for the first three months exceeded estimates.

CK Asset Holdings added 1.6% to HK$32.75, CK Infrastructure Holdings gained 0.7% to HK$44.65, and Power Assets Holdings climbed 1.7% to HK$45.65 after three listed units forming a consortium to acquire the largest natural gas network operator in Northern Ireland..

Goldman Sachs' forecasted a potential surge of up to 40% for Chinese shares if the country introduces reforms for corporate governance, dividend distributions and institutional ownership. The bullish outlook follows UBS' upgrade on Chinese stocks to overweight, citing competent corporate earnings and fiscal support as the major factors for the upgraded index.

Adding to the positive sentiment is the China Securities Regulatory Commission's commitment to expanding the stock connect cross-border investment scheme in Hong Kong, a step in boosting the city's status as an international financial center.

At close of trade, the benchmark Shanghai Composite index was up 0.27%, or 8.08 points, to 3,052.90. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.21%, or 3.52 points, to 1,698.34. The blue-chip CSI300 index climbed up 0.25%, or 8.66 points, to 3,530.28.

CURRENCY NEWS: China's yuan was tad lower against the dollar on Thursday. Prior to the market's opening, the People's Bank of China set the midpoint rate at 7.1058 per dollar, 10 pips weaker than the previous fix of 7.1048. The onshore yuan opened at 7.2449 per dollar and was changing hands at 7.2468 by midday, 7 pips softer than the previous late session close.

The 225-issue Nikkei Stock Average index fell by 831.60 points, or 2.16%, to finish at 37,628.48. The broader Topix index of all First Section issues on the Tokyo Stock Exchange stumbled 47.20 points, 1.74%, to 2,663.53.

All 33 TSE sectors closed lower, with Electric Power & Gas sector being bottom performer losers in percentage term, falling 3.32%, followed by Mining (down 3.11%), Transportation Equipment (down 3.76%), Real Estate (down 2.45%), and Electric Appliances (down 2.33%) sectors.

CURRENCY NEWS: The Japanese yen hits 155 level, 34-year lows, against greenback on Thursday. The yen was last quoted at 155.29 per US dollar compared with 155.24 on Wednesday.

The yen's slide to fresh 34-year lows is likely to force Bank of Japan Governor Kazuo Ueda to walk a delicate line in guiding monetary policy this week as he tries to maintain a calibrated path to exiting ultra-easy rates without upending the currency. The Bank of Japan is widely expected to leave policy settings and bond purchase amounts unchanged at the conclusion of a two-day meeting on Friday, on prospects of steady wage gains.

The yen?s weakness against the dollar has ignited the market?s anxiety surrounding currency intervention. Japanese Finance Minister Shunichi Suzuki and other policymakers have said they are watching currency moves closely and will respond as needed.

Later this week, the Commerce Department is due to release a report on personal income and spending that includes readings on inflation said to be preferred by the Fed.

Investors were also preparing to take in more earnings results, which have been resilient so far this quarter. Facebook parent Meta Platforms will report after the closing bell, while Microsoft and Alphabet will report results after the close on Thursday.

At closing bell, the Dow Jones Industrial Average index was down 42.77 points, or 0.11%, to 38,460.92. The S&P500 index advanced 1.08 points, or 0.02%, to 5,071.75. The tech-heavy Nasdaq Composite index increased by 16.11 points, or 0.1%, to 15,712.75.

Total 7 of 11 S&P500 sectors closed higher along with S&P500 index, with consumer staple was top performing sector, rising 0.93%, while industrial sector was bottom performer, falling 0.79%.

Among individual stocks, Tesla spiked by 12.1% even though the electric vehicle maker reported weaker than expected first quarter results. The surge by Tesla came after CEO Elon Musk said the company plans to start production of a new affordable model by early 2025.

At closing bell, the Straits Times Index (STI) index surged 20.41 points, or 0.62% to 3,293.13 after trading between 3,282.60 and 3,308.12. Volume of 1.86 billion shares worth S$1.53 billion changed hands. Across the broader market, advancers outpaced decliners with 405 to 205.

DFI Retail Group was the top constituent gainer for the day, rising 4.32% to S$1.93. Jardine Cycle & Carriage was the top decliner on the STI for the day, down 0.98% to S$26.38.

Banking stocks ended the day higher, with shares of Oversea-Chinese Banking Corp rising 0.93% at S$14.15 and United Overseas Bank inclining 0.19% at S$31.15. DBS Group Holdings fell 0.69% to S$34.38.

In company news, Anchun International shares surged over 14% after the company signed a strategic partnership agreement with Stamicarbon through its wholly-owned subsidiary, Hunan Anchun Advanced Technology.

Goldman Sachs' forecasted a potential surge of up to 40% for Chinese shares if the country introduces reforms for corporate governance, dividend distributions and institutional ownership. The bullish outlook follows UBS' upgrade on Chinese and Hong Kong stocks to overweight, citing competent corporate earnings, Beijing?s policy support and returning tourists as the major factors for the upgraded index.

At closing bell, the benchmark Hang Seng Index jumped 372.34 points, or 2.21%, to 17,201.27. The Hang Seng China Enterprises Index added 145.60 points, or 2.45%, to 6,100.22.

Among blue chips, Ping An Insurance advanced 4.2% to HK$34.40, and Hong Kong Exchanges and Clearings (HKEX added 3.6% to HK$239, after their first quarter earnings beat consensus estimates.

SenseTime Group, which makes chips for artificial intelligence (AI), rose as much as 36% after releasing the latest version of its SenseNova generative AI model. The stocks surged 31% to HK$0.80 before trading in its shares was suspended pending an exchange statement on possible inside information.

Goldman Sachs' forecasted a potential surge of up to 40% for Chinese shares if the country introduces reforms for corporate governance, dividend distributions and institutional ownership. The bullish outlook follows UBS' upgrade on Chinese stocks to overweight, citing competent corporate earnings and fiscal support as the major factors for the upgraded index.

At close of trade, the benchmark Shanghai Composite index was up 0.76%, or 22.84 points, to 3,044.82. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 1.18%, or 19.78 points, to 1,694.82. The blue-chip CSI300 index added 0.44%, or 15.40 points, to 3,521.62.

CURRENCY NEWS: China's yuan was little changed against the dollar on Monday. Prior to the market's opening, the People's Bank of China set the midpoint rate at 7.1048 per U.S. dollar, firmer than the previous fix of 7.1059. The onshore yuan opened at 7.2435 per dollar and was changing hands at 7.2456 at midday, 8 pips away from the previous late session close.

At closing bell, the benchmark S&P/ASX200 index fell marginal 0.51 point, or 0.01%, to 7,683. The broader All Ordinaries index edged down 0.43 point, or 0.01%, to 7,937.51.

Sectors ended mixed along with the S&P/ASX 200 Index. Total 3 sectors were higher and 8 lower. Financial was the best performing sector, gaining +0.35%, while utilities was the worst performing sector, falling 0.59%.

ECONOMIC NEWS: Australia's Consumer Price Inflation Up 3.6% On Year- Consumer prices in Australia rose by a seasonally adjusted 1% on quarter in the first quarter of 2024, the Australian Bureau of Statistics said on Wednesday. This showed acceleration from 0.6% in the three months prior. On a yearly basis, inflation rose 3.6%, easing from 4.1% in the previous three months.

The 225-issue Nikkei Stock Average index surged by 907.92 points, or 2.42%, to finish at 38,460. The broader Topix index of all First Section issues on the Tokyo Stock Exchange spurted 44.50 points, 1.67%, to 2,710.73.

Total 20 of 33 TSE sectors closed higher, with Insurance sector being top performer in%age term, rising 1%, followed by Securities & Commodities Futures (up 0.9%), Construction (0.7%), and Foods (0.62%). Marine Transportation was bottom performing sector in%age term, down 1.5%, followed by Rubber Products (down 1.1%) and Metal Products (down 0.95%) sectors.

Shares of exporters? particularly chip-related companies rallied. Renesas Electronics jumped 10.5%, while Tokyo Electron was up 7.1%. Toyota was up 2.4%. Sony Group was up 2.6%.

Nikon soared 10.3% after the UK-based Silchester International Investors took a stake of more than 5% in the company.

ECONOMIC NEWS: Producer Prices In Japan Rise 2.3% On Year In March- Producer prices in Japan rose 2.3% on year in March, the Bank of Japan said on Wednesday. This was up from the upwardly revised 2.2% gain in February (originally 2.1%). On a monthly basis, producer prices surged 0.8% - accelerating from 0.3% in the previous month. Excluding international transportation, producer prices rose 0.8% on month and 2.2% on year.

CURRENCY NEWS: The Japanese yen hovered around upper 154 level, 34-year lows, against greenback on Wednesday, after Japanese Finance Minister Shunichi Suzuki said that the environment for an appropriate response over the foreign exchange market has become ready. The yen was last quoted at 154.79 per US dollar compared with 154.84 on Tuesday.

Investors also awaited a slew of key U.S. economic data this week, including reports on new home sales, durable goods orders and personal income and spending. Earnings season also starts to pick up steam this week, with Tesla, Boeing, IBM, Caterpillar, Honeywell, Alphabet, Intel, Microsoft, Chevron and Exxon Mobil among the companies due to report their quarterly results.

At closing bell, the Dow Jones Industrial Average index was up 263.71 points, or 0.69%, to 38,503.69. The S&P500 index advanced 59.95 points, or 1.2%, to 5,070.55. The tech-heavy Nasdaq Composite index increased by 245.33 points, or 1.59%, to 15,696.64.

Total 10 of 11 S&P500 sectors closed higher along with S&P500 index, with information technology was top performing sector, rising 1.71%, while material sector was bottom performer, falling 0.83%.

Among individual stocks, Spotify Technology SA shares surged 16% after the audio-streaming giant reported it swung to a profit in the first quarter, as the company boosted subscribers and added new features. Paid subscribers rose 14% year over year to 239 million.

Globe Life shares surged more than 11% after the life insurance company raised its full-year earnings guidance. The life insurer anticipates earnings per share between $11.50 and $12.00 for 2024, up from a prior range between $11.30 and $11.80.

GE Aerospace shares jumped nearly 7% on Tuesday after it beat first-quarter earnings expectations and raised its operating profit outlook.GE Aerospace expects adjusted earnings to come out between $3.80 and $4.05 a share, and an operating profit between $6.2 billion and $6.6 billion, which is higher than its previous forecast.

ECONOMIC NEWS: US New Home Sales Surge 8.8% In March- A report released by the Commerce Department on Tuesday showed a substantial increase in new home sales in the U.S. in the month of March. The Commerce Department said new home sales spiked by 8.8 percent to an annual rate of 693,000 in March after plunging by 5.1 percent to a revised rate of 637,000 in February. Meanwhile, the report also said median sales price of new houses sold in March was $430,700, down 1.9 percent from $438,900 a year ago. The estimate of new houses for sale at the end of March was 477,000, while represents a supply of 8.3 months at the current sales rate.

US Business Activity Growth Slows In April- US business activity continued to increase in April, but the rate of expansion slowed amid signs of weaker demand. The latest rise in output was the smallest in the year-to-date reflecting reduced rates of growth and falling orders in both the manufacturing and services sectors. April saw an overall reduction in new orders for the first time in six months. Companies responded by scaling back employment for the first time in almost four years, with business confidence also waning to the lowest since last November. Rates of inflation generally eased at the start of the second quarter, with both input costs and output prices rising less quickly at the composite level. That said, manufacturing input cost inflation hit a one-year high. The headline S&P Global Flash US PMI Composite Output Index dropped to 50.9 in April from 52.1 in March. Although continuing to signal an increase in business activity during the month, the latest data indicated only a slight expansion and one that was the softest since December. Nevertheless, output has now risen for 15 consecutive months. Slower increases in activity were recorded across both the manufacturing and services sectors, with rates of growth easing to three- and five-month lows respectively. The S&P Global Flash US Manufacturing PMI posted 49.9 in April to signal broadly unchanged business conditions over the course of the month. The index was down from 51.9 in March and ended a three-month sequence of improving operating conditions. US manufacturers drew down their stocks of purchases for the second consecutive month in April, and to a solid degree that was the most marked since August last year. Firms made some efforts to limit the pace of depletion, however, raising their purchasing activity slightly following a fall in the previous survey period.

At closing bell, the Straits Times Index (STI) index surged 47.55 points, or 1.47% to 3,272.72 after trading between 3,250.49 and 3,273.17. Volume of 1.72 billion shares worth S$1.44 billion changed hands. Across the broader market, advancers outpaced decliners with 385 to 197.

Hongkong Land was the top constituent gainer for the day, rising 3.77% to S$3.03. Yangzijiang Shipbuilding (Holdings) was the top decliner on the STI for the day, down 1.7% to S$1.72.

Banking stocks ended the day higher, with shares of DBS Group Holdings adding 1.61% to S$34.62, Oversea-Chinese Banking Corp rising 1.37% at S$14.02, and United Overseas Bank inclining 2.1% at S$31.09.

In company news, Singapore?s core inflation eased to 3.1% on-year in March, driven mainly by slower price rises in food and services, data from Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) showed on Tuesday. On a month-on month basis, core inflation - which excludes accommodation and private transport - fell by 0.2% in March. Meanwhile consumer price index, or headline inflation, slowed to 2.7% on-year in March, down from 3.4% in February.

China?s securities regulators unveiled measures on Friday to bolster the Hong Kong market by adding more exchange-traded funds to the Stock Connect programme and supporting listings of Chinese companies in the city

At closing bell, the benchmark Hang Seng Index jumped 317.24 points, or 1.92%, to 16,828.93. The Hang Seng China Enterprises Index added 123.36 points, or 2.12%, to 5,954.62.

Among blue chips, Pork processing giant WH Group jumped 5.8% to HK$5.80 after announcing its operating profit increased 37% in the first quarter. Sportswear maker Li Ning advanced 5.7% to HK$18.50 after a business update showed growth in retail and e-commerce sales in the first quarter.

Shares of tea shop operator Sichuan Baicha Baidao Industrial and Tianjin Construction Development Group tanked on their market debut. Baicha Baidao closed 27% lower from its IPO price of HK$17.50. The company raised HK$2.59 billion from its Hong Kong IPO. Tianjin Construction plunged 39% from its HK$2.50 IPO price.

At close of trade, the benchmark Shanghai Composite index was down 0.74%, or 22.62 points, to 3,021.98. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 0.19%, or 3.22 points, to 1,675.05.

The blue-chip CSI300 index declined 0.7%, or 24.68 points, to 3,506.22, with its financial sector sub-index lower by 0.09%, the consumer staples sector up 0.96%, the real estate index down 1.07% and the healthcare sub-index up 1.23%..

CURRENCY NEWS: China's yuan weakened slightly against the dollar on Monday. Prior to the market's opening, the People's Bank of China set the midpoint rate at 7.1059 per dollar, weaker than the previous fix 7.1043. The onshore yuan opened at 7.2429 per dollar and was changing hands at 7.2447 at midday, 7 pips weaker than the previous late session close and 1.95% weaker than the midpoint.