ASIA MARKETS: Hong Kong Stocks Rebound As Financials Rally

By Laura He, MarketWatch

Shanghai stocks climb to a near eight-month high

China stocks buck weaker regional trend

HONG KONG (MarketWatch) -- Hong Kong stocks rebounded on Monday, bucking a weaker regional trend, as financial stocks rallied on the upcoming test of a scheme to allow cross-trading of Shanghai and Hong Kong shares.

The Hang Seng Index ended up 0.3%, recovering from a retreat on Friday.

Hong Kong Exchanges & Clearing , the city's stock-exchange operator, said it planned to conduct later this month a connectivity test and market rehearsals for the Shanghai-Hong Kong Stock Connect, a scheme to allow direct stock trading between the two markets. Shares of the bourse operator advanced 1.8%.

Brokerage firms saw solid gains across the sector, with First Shanghai Investments surging 18.1%. Among other gainers, China Everbright jumped14.8%, CITIC Securities Co. was up 6.9%, Shenyin Wanguo increased 6.8%, and Haitong Securities Co. rose 5.7%.

Meanwhile, Fosun International improved 0.7%, after news that the conglomerate has made an offer for Australia's Roc Oil Co. .

Shares in HSBC Holdings retreated 0.9% before the announced its first-half results, which came after market close. The bank Sino-British banking giant said first-half net profit fell as business slowed in some key Asian markets and in investment banking. Local bank Hang Seng Bank added 0.3% ahead of its interim earnings.

Over on the Chinese mainland, the Shanghai Composite Index rose even higher, climbing 1.7% to a near eight-month high of 2,223.33.

However, other major Asian markets were weaker. Japan's Nikkei Average dropped 0.3%, losing for a third day, while the broader Topix index fell 0.4%.

The yen (USDJPY), meanwhile, traded unchanged at 102.59 against the dollar.

Australia's S&P/ASX 200 finished 0.3% lower, and New Zealand's Nzx 50 closed down 0.4%.

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