Hong Kong, Mainland Markets Drop On US Reports

Hong Kong stocks ended the morning session in negative territory on Thursday on renewed global trade fears as Donald Trump prepares to impose sanctions on China for what he claims is its "theft" of US intellectual property.

The Hang Seng Index fell 0.6 percent, to 31,218 by the break.

On the mainland, the Shanghai Composite Index slipped 0.8 percent, to 3,254, while the Shenzhen Composite Index, which tracks stocks on the mainland's second exchange edgedd own 0.2 percent, to 1,854.

Tokyo ended the morning 0.4 percent higher and Seoul gained 0.7 percent. Singapore was slightly higher, while Taipei, Manila and Jakarta also climbed. But Sydney slipped.

While markets are predominantly higher, trading floors remain edgy on fresh trade war fears after it emerged Donald Trump is expected to announce sanctions on China over what the US calls its "theft" of US intellectual property.

On oil markets both main contracts extended Wednesday's surge following an official report showing US stockpiles fell last week, confirming an industry group's figures and indicating a pick-up in demand. (AFP)

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