ASIA MARKETS: Hong Kong Stocks Rise Most In A Month As Protests Ease

By Laura He, MarketWatch

HONG KONG (MarketWatch) -- Hong Kong stocks on Monday logged their biggest daily gain in more than a month, as tensions eased in the territory as some pro-democracy demonstrators withdrawing from the protest zones.

The Hang Seng Index advanced 1.1% to 23,315.04, closing higher for a second straight session. Stocks had been hit recently as central Hong Kong was clogged by protests against Beijing's plan to tightly control the election of the territory's chief executive in 2017.

The Hong Kong Monetary Authority said a number of banks had resumed normal services in the areas affected by the protests, with only seven branches of seven banks remaining temporarily closed.

Local lenders bounced back, as index heavyweight HSBC Holdings PLC recovered 0.6% after eight straight sessions of losses, and Chong Hing Bank Ltd. advanced 1%. Bank of East Asia Ltd. rose 0.8%, and BOC Hong Kong (Holdings) Ltd. added 0.6%.

Hong Kong retailers also rebounded, with top winners including cosmetics vendors Sa Sa International Holdings Ltd. and Bonjour Holdings Ltd. , up 3.3% and 2.8%, respectively.

Casino stocks rallied after heavy losses at the end of last week, as Macau's gambling revenues declined by a less-than-expected 11.7% in September from a year ago. Sands China Ltd. surged 7.1%, Galaxy Entertainment Group Ltd. soared 6.6%, SJM Holdings Ltd. spiked 5.5%, MGM China Holdings Ltd. jumped 5.2%, and Wynn Macau Ltd. leapt 4.9%.

Other market movers included Chinese online major Tencent Holdings Ltd. , climbing 3.2%, and Hong Kong Exchanges & Clearing Ltd. advancing 2.9%.

Mainland Chinese markets remained closed for the National Day holidays.

In other Asian markets, Japan stocks also finished higher, with the Nikkei Average improving by 1.2%, and the broader Topix zooming 1.1% higher. The yen (USDJPY) strengthened to Yen109.39 against the greenback, compared with Yen109.78 in the previous session.

However, Sydney's S&P/ASX 200 dropped 0.5%, and Seoul's Kospi Composite Index fell 0.4%.

Subscribe to WSJ: http://online.wsj.com?mod=djnwires