Most Asia markets up but dollar slips against peers

Hong Kong led gains in most Asian markets Monday after officials announced the start of a long-awaited link-up with Shenzhen, but the dollar retreated against most peers after its recent surge.

Crude prices saw fresh losses, after both main contracts slumped around four percent on Friday due to disagreements over plans to cut output, with Iran and Iraq pressing to be excluded and Russia suggesting it will only freeze output.

Officials on Friday announced that the tie-up between the Hong Kong and Shenzhen markets would start on December 5.

The scheme will give Hong Kong traders access to the mainland's second stock exchange, the world’s eighth largest with a market capitalisation of $3.3 trillion as of September. 

The link follows a similar "stock connect" between Shanghai and Hong Kong launched two years ago, which gave foreigners new access to Chinese companies not quoted elsewhere, and enabled mainlanders to trade in Hong Kong.

The city's Hang Seng Index finished up 0.5 percent, though Shenzhen slipped 0.1 percent by the close. Shanghai ended up 0.5 percent.

Most other regional stock markets were up, extending last week's gains on bets that Donald Trump's spending plans would boost US economic growth.

Seoul rose 0.2 percent, Singapore added 0.8 percent and Wellington added 0.1 percent, but Sydney dipped 0.8 percent.

Tokyo shed 0.1 percent after a seven-day winning run that took it to an 11-month high. Exporters were hit by a slight recovery in the yen against the dollar.

- Oil extends losses -

The greenback has come off recent highs touched last week -- fuelled by bets on a US interest rate rise in December -- as traders take a breather.

The dollar tumbled to 111.96 yen, having almost hit 114 yen at the end of last week, while higher-yielding currencies also made inroads.

The Australian dollar, South Korean won, Indonesian rupiah and Mexican peso were sharply up on the US unit.

"With the dollar rally pausing for a breath, we are seeing long dollar positions getting closed out," Khoon Goh, head of regional research at Australia & New Zealand Banking Group in Singapore, told Bloomberg News.

"With the yen falling the most among the G10 currencies since the US election, it is natural for a larger rebound in that currency."

News that Saudi Arabia, the kingpin of the OPEC cartel, had walked out of talks on Monday -- and suggested that demand would pick up in 2017 -- has fanned fears a settlement will not be reached before its twice-yearly meeting Wednesday.

"With so many toys being thrown out of their prams now in oil quota tantrums, its hard to see who will pick them all up by Wednesday's deadline," Jeffrey Halley, senior market analyst at OANDA, said in a note.

In afternoon trade Monday Brent and West Texas Intermediate were each down about 0.8 percent but had pared early heavy losses.

The drop weighed on energy firms, with Australia's Woodside down 2.3 percent, Tokyo-listed Inpex losing almost one percent and CNOOC in Hong Kong off 0.4 percent.

In early European trade London and Frankfurt each fell 0.4 percent and Paris lost 0.1 percent.

- Key figures around 0800 GMT -

Tokyo - Nikkei 225: DOWN 0.1 percent at 18,356.89 (close)

Hong Kong - Hang Seng: UP 0.5 percent at 22,830.57 (close)

Shanghai - Composite: UP 0.5 percent at 3,277.00 (close)

Shenzhen - Composite: DOWN 0.1 percent at 2,126.82 (close)

London - FTSE 100: DOWN 0.4 percent at 6,816.49

Euro/dollar: UP at $1.0652 from $1.0603 Friday

Dollar/yen: DOWN at 111.96 yen from 113.08 yen 

Pound/dollar: UP at $1.2495 from $1.2457

Oil - West Texas Intermediate: DOWN 37 cents at $45.69 a barrel

Oil - Brent North Sea: DOWN 35 cents at $46.89

New York - Dow: UP 0.4 percent at 19,152.14 (close)