HK, Mainland Shares Slip Into The Red Again

Hong Kong stocks reversed early gains to end the morning session in negative territory on Thursday as investors fret that China and the United States will embark on a potentially damaging trade war.

The Hang Seng Index fell 0.6 percent, to 29,508.

On the mainland, the Shanghai Composite Index slipped 0.3 percent, to 2,909, while the Shenzhen Composite Index fell 0.9 percent, to 1,598.

Tokyo ended the morning session 0.8 percent higher, with the yen weakening as investors shifted out of the safe-haven unit.

Sydney jumped more than 1 percent while Seoul was marginally higher.

Wellington jumped more than 1 percent after data showed that while New Zealand's economy cooled in January-March, interest rates are not expected to rise in the near term.

Stephen Innes, head of Asia-Pacific trading at Oanda, said markets were "unsure if we're in the calm after the storm, the lull between storms or even in the eye of the hurricane".

But he added: "There's certainly a pattern forming that while equity markets quiver during the trade dispute, stocks come roaring back with [Facebook, Apple, Amazon, Netflix and Google] consistently leading the charge.

"Despite the huge question mark over global trade, Wall Street quickly returns focus to the US economy, which there is no denying is doing exceptionally well." (AFP)

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