Hong Kong, Shanghai Stocks Slide On Trade Row Fear

Hong Kong stocks ended Friday morning on a negative note, despite a healthy lead from Wall Street, as investors nervously await developments in the China-US trade talks.

The Hang Seng Index slipped 0.5 percent, to 28,913 by the break.

On the mainland, the Shanghai Composite Index was down 0.8 percent, to 3,077

while the Shenzhen Composite Index lost 1.1 percent, to 1,678.

Tokyo ended the morning 0.2 percent down and Seoul dropped 0.2 percent.

However, Sydney added 0.6 percent and Singapore put on 0.1 percent, with Manila and Jakarta also higher.

The next possible market-moving catalyst could be next week as top US officials head to Beijing on March 28-29 for a new round of trade talks, followed by a trip to Washington by China's top negotiator in April.

The pound edged up but was struggling to claw back its latest losses after the EU gave Britain a Brexit deadline extension.

Sterling has come under pressure owing to the uncertainty in the past few days, falling to as low as US$1.3004 overnight on Thursday, though it has recovered slightly and is still maintaining its position.

In the local market, it was trading at HK$10.31.

However, Oanda senior market analyst Jeffrey Halley remained wary.

"The investor community continues to price the pound as if a no-deal Brexit is not possible, looking for excuses to buy rather than sell," he said in a note. "A close look at the text of the EU announcement suggests this is not a guaranteed outcome." (AFP)

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