HK Stocks Lose Ground Amid Trade War Fears

Hong Kong shares closed flat on Monday as investors grappled with the fallout from a worsening trade dispute between Beijing and Washington.

Dealers say US President Donald Trump's threat to impose tariffs on Mexican imports also affected sentiment.

The Hang Seng Index finished 7 points lower at 26,893. Turnover was HK$82.7 billion.

China Mobile put on almost 3 percent. Tencent added more than 2 percent after the mainland's Ministry of Industry and Information Technology announced it will soon grant 5G licenses for commercial use.

But Macau gaming shares plunged, with Wynn and MGM Macau each losing around 5 percent.

Across the border, the benchmark Shanghai Composite Index slipped 0.3 percent, or 8 points, to close at 2,890.

The Shenzhen Composite Index fell 1 percent, or 15 points, to 1,515.

Regional stocks were mixed.

Shares in Taiwan were up 1 point, while Japan's Nikkei 225 index lost 1 percent.

South Korea's Kospi rose 1.3 percent after Samsung Electronics' Vice Chairman Lee Jae-yong met with top executives of the company to discuss strategy.

Samsung is bracing itself for slowing demand for computer chips and smartphones, as well as the repercussions of the China-US trade conflict.

In Australia, the S&P ASX 200 dropped 1.2 percent, while Singapore shares dipped 0.1 percent. (Additional reporting by AFP/AP)