HK, Shanghai Stocks Slide On Policy Shift Fears

Hong Kong shares ended sharply lower on Thursday, tracking a sell-off on Wall Street and across most of Asia, while Shanghai plunged more than 2 percent on concerns that Beijing will ease up on its recent monetary easing measures.

The Hang Seng Index fell 0.9 percent, to close at 29,549.

On the mainland, the Shanghai Composite Index tumbled 2.4 percent, to 3,123 and the Shenzhen Composite Index dived 3.4 percent, to 1,688.

Reports say investors were concerned that mainland authorities could ease up on a recent run of mini stimulus measures that have supported the economy and equities in recent months.

Seoul dropped 0.5 percent and Singapore was off 0.2 percent, with Manila and Jakarta also lower. However, Tokyo edged up 0.5 percent, Taipei added 0.1 percent and Mumbai put on 0.3 percent.

Sydney and Wellington were closed for a public holiday.

Oanda senior market analyst Jeffrey Halley said: "Time will tell if the US and China lift the rest of the world up or the rest of the world puts the brakes on the US and China. That's a story for another day but will undoubtedly make the second half of 2019 as interesting as the first."

Broad unease on trading floors weighed on currencies, with the US dollar up against higher-yielding units. The South Korean won shed 0.9 percent, hit by the growth data, while Mexico's peso shed 0.7 percent and the South African rand dropped 1 percent. (AFP)