Hong Kong, China, Australia Post Strong Pre-Holiday Gains Monday

Asian markets rallied Monday. The Hang Seng climbed 1.82% in a shortened session. China's Shanghai Composite was up 1.4%. Japan was closed for a public holiday. "I'm surprised at the strength today," said BNP Paribas' Miles Remington. "I think last week's move on interest rates on the mainland wasn't particularly aggressive and people are taking heart with that."

Sydney's S&P/ASX 200 added 1.2% and South Korea's Kospi was up 2%.

China Mobile (CHL) climbed 2.9%. Rival China Unicom (CHU) gained 3.6%. CNOOC (CEO) was up 3.5%. PetroChina (PTR) gained 2.2%. China Life (LFC) was up 2.5%.

"We expect some more upside this week, especially since there will not be any deterioration in the U.S. subprime situation towards the year-end and there shouldn't be any unexpected credit tightness from China. So news-wise it's neutral to positive," said UOB Kay Hian Holdings' Steven Leung.

Sources: MarketWatch, Reuters
Additional Reading: China's Talent Gap

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