HK shares follow global trade recovery and downward optimism

* HK-> Daily Shanghai Connect used 9.9%, Shanghai-> HK Daily used 3.5%

* HSI + 2.3%, HSCE + 1.9%, CSI300 + 1.3%

* FTSE China A50 + 1.6%

June 10 (Reuters) – Hong Kong stocks continued their rally on Monday after the US suspended plans to impose tariffs on Mexico and global investors were hoping for a drop in interest rates Americans with poor job data.

** The Hang Seng index rose 2.3% to 27,578.64 points, after recording its best session since December 3, 2018. The index of Chinese companies gained 1.9% to 10,526.92 points.

** The United States and Mexico reached an agreement on Friday, with Mexico agreeing to rapidly expand a controversial asylum program and deploy security forces to stem the flow of illegal migrants from the United States. Central America.

** Employment growth in the United States slowed sharply in May and wages rose less than expected, raising fears of a slowdown in economic activity in the labor market, which could encourage the Federal Reserve to reduce interest rates this year.

** A much-anticipated meeting between US President Donald Trump and Chinese President Xi Jinping at the end of June parallels last December's Buenos Aires summit, which postponed an increase in tariffs, said on Saturday. US Treasury Secretary Steven Mnuchin.

Surprisingly, Chinese exports returned to growth in May despite rising US tariffs, but imports fell the most in almost three years, a further sign of weak domestic demand that could prompt Beijing to intensify its stimulus.

** "We think Beijing will likely intensify its stimulus package to stabilize financial markets and growth," Nomura economists said in a note to their clients.

** Across the region, the ex-Japan MSCI Asia-Japan stock index strengthened 0.97%, while Japan's Nikkei closed at 1.2%.

** The yuan was quoted at 6.9334 for a US dollar at 08.15 GMT, 0.31% lower than the previous close of 6.9118.

** The most successful shares among the H shares were CNOOC Ltd (+ 5.26%), followed by Tencent Holdings Ltd (+ 4.42%) and Shenzhou International Group Holdings Ltd. (+ 4.29%).

** The three largest declines in percentage of H shares were Great Wall Motor Co Ltd, down 1.85%, Guangzhou Automobile Group Co Ltd, down 1.4% and Huaneng Power International Inc., down 1.4%.

** At closing, China A shares traded at a premium of 25.99% over H shares listed in Hong Kong. (Report by the Shanghai Newsroom, edited by Sherry Jacob-Phillips)