Hong Kong, Shanghai Stocks Lose Early Steam

Hong Kong stocks gave up initial gains to end the morning session in the red on Friday, as concerns about increasing tensions between China and the United States over trade weigh on investor sentiment.

The Hang Seng Index slipped 0.8 percent, to 28,056.

On the mainland, the Shanghai Composite Index slipped deep into the red, losing 1.6 percent, to 2,912, while the Shenzhen Composite Index gave up early gain and lost 1.7 percent, to 1,558.

However, Tokyo went into the break 1.6 percent higher, while Sydney rose 1 percent, Seoul put on 0.4 percent and Taipei added 0.2 percent. Manila soared more than 1 percent, while Wellington and Jakarta were also up. But Singapore dropped 0.5 percent.

On currency markets, the ongoing uncertainty among investors was reflected in a drop in high-yielding, riskier units, with the Chinese yuan weakening further to sit at lows not seen since November.

The pound was also feeling the pressure after May said she would set out her timetable for leaving office after her Brexit deal with the EU, which has already been rejected by parliament three times, goes to MPs early next month.

Investors sold sterling on worries that her likely defeat could lead to a hardline Brexiter taking her post and pushing for a hard exit, which most commentators warn would hammer the country's economy.

"The chances of a feasible Brexit solution being achieved seem to be falling by the day, much like the government's chance of re-election -- any light at the end of the tunnel being a train coming the other way," said Oanda senior market analyst Jeffrey Halley. (AFP)

______________________________