HSI Manages Small Gain, Other Asian Stocks Retreat

Hong Kong shares closed with slight gains on Wednesday, bucking a regional trend, as traders focus on the upcoming meeting between Donald Trump and Xi Jinping.

The Hang Seng Index added 0.1 percent, to 28,221.

On the mainland, the Shanghai Composite Index slipped 0.2 percent, to 2,976 while the Shenzhen Composite Index barely moved, inching up 0.1 points to 1,560.

Tokyo ended 0.5 percent lower, Sydney slipped 0.3 percent and Singapore was off 0.1 percent, with Wellington, Taipei, Manila and Bangkok also down.

However Jakarta and Mumbai managed moderate gains.

The US dollar rose while gold fell, with the metal's safe haven status in times of turmoil unable to stop it retreating from six-year highs.

Investors are keeping their focus on the planned meeting between Trump and Xi in Japan, although the US side dampened expectations for a deal between the two, saying the talks would set out a path for an agreement.

However, officials did say they were willing to hold off hiking tariffs on more Chinese goods, Bloomberg News reported.

Still, observers expect the issue to continue for some time.

"The US-China trade war stalemate is likely to continue as political considerations reign supreme," said asset manager T Rowe Price.

"With President Trump facing re-election in 2020, he may want to put off any agreement until next year, while China may want to deny President Trump a trade success to damage his re-election prospects, allowing Beijing to negotiate with his successor." (AFP)