Hong Kong Stocks Snap A Four-day Rally

Hong Kong stocks finished on Tuesday with deep losses following a healthy four-day rally, though mainland markets extended their latest advances.

The Hang Seng Index shed 1.4 percent, to 25,975.

On the mainland, the Shanghai Composite Index rose 0.4 percent, to 3,345 while the Shenzhen Composite Index added 1.7 percent, to 2,157.

Tokyo, Seoul, Singapore, Taipei and Manila were also in negative territory. Sydney and Jakarta were flat.

Traders have for weeks been trying to balance the reopening of economies with worries about the disease as it continues its march across the planet.

On Monday there was more positive data, with an index of the US service sector -- which makes up the vast majority of the economy -- seeing its biggest-ever jump in June to beat forecasts.

"Investors have recognised that as bad as the economy in the US is, it's not as bad as what people thought it would look like in March and April," said Nancy Prial at Essex Investment Management.

"The market has started to sense we might see better-than-anticipated results fairly broadly across a wide spread of companies." (AFP)