SE Asia Stocks-Rise on cautious US response to Hong Kong law, Singapore leads

Southeast Asian markets rose on Monday as US President Donald Trump steered clear of threatening his existing trade deal with China over Hong Kong, while signs of a gradual recovery in China's economy supported sentiment.

Trump's announcement, which was widely feared for its effect on Sino-US relations, stopped short of calling for an immediate end to Hong Kong's privileges, though he warned of starting the process of ending its special status under US law.

Southeast Asian stock markets have been led over the past year by the ups and downs of US-China relations, with their economies all closely tied to China, the region's biggest trading partner.

An official survey from China, which showed increased momentum in its services and construction sectors in May, also boosted investor sentiment.

In Thailand, Indonesia and the Philippines, it was also the first day of relaxed mobility restrictions after a weeks-long lockdown.

Leading the pack, Singaporean stocks climbed up to 1.8pc, with big-cap conglomerates Jardine Matheson Holdings Ltd and Jardine Cycle & Carriage Ltd gaining over 2pc each.

In Thailand, the parliament on Sunday passed a 1.9 trillion baht ($58 billion) support package to counter the COVID-19 pandemic's economic fallout.

The local benchmark added as much as 1.2pc and hit its highest since March 6, with the financial sector as its top gainer.

Malaysia touched its highest level in almost three months.

Rubber Glove maker Top Glove Corp, up over 20pc, was the biggest gainer.

Philippine shares hit a seven-week high while gains in financials pushed the Vietnamese benchmark higher for a third day.

The Malaysian and Philippine indexes extended their rally to a fourth session.

Markets in Indonesia were closed for a public holiday.