HK Stocks Edge Up, Trade War Fears Weigh Down Asia

Hong Kong stocks spent most of the day in negative territory but recovered to end up 0.2 percent, at 30,137.

On the mainland, the the Shanghai Composite Index lost 0.8 percent to 3,163 while the Shenzhen benchmark was down 0.8 percent, to 1,842.

Most other Asian markets fell for a second day amid jitters about US-Chinese trade tensions and mounting public scrutiny of technology companies.

Toyko's Nikkei 225 shed 0.4 percent to 21,292 while Sydney's S&P-ASX 200 declined 0.1 percent to 5,751.

Elsewhere, India's Sensex retreated 0.1 percent and Seoul's Kospi ended down 27 points at 2,442. Benchmarks in Taiwan and Southeast Asia also declined.

Investors worry China's decision to raise tariffs on US$3 billion of US goods including pork, apples and steel pipe increases the risk of a broader conflict that might depress global trade.

The amount of goods affected is a small share of China's US$150 billion annual imports of U.S. goods. But investors see a bigger fight looming over President Donald Trump's approval of possible higher US duties on US$50 billion of Chinese goods in response to complaints that Beijing steals or pressures foreign companies to hand over technology.

"The risk of a downward spiral to tit-for-tat trade measures has appreciably increased," Weiliang Chang of Mizuho Bank said in a report.

The US dollar dipped in early trading but rebounded to 106.16 yen from Monday's 105.89 yen. The euro rose to US$1.2325 from US$1.2302. (AP)