Hong Kong Stocks Down At Break As Jitters Continue

Hong Kong stocks ended the Monday morning session with losses as investor jitters over the increasingly fractious US-China trade war refused to ease.

The Hang Seng Index fell 0.6 percent, to 27,188 by the break.

Elsewhere in the region, Shanghai edged down 0.3 percent, but Tokyo rose 0.3 percent, and Jakarta gained 0.7 percent.

Investors were expected to welcome a three-day weekend that saw US and UK markets closed on Monday, as Washington and Beijing sharpened their rhetoric over the trade war and the resignation of British Prime Minister Theresa May raised the likelihood of a no-deal Brexit.

The strong show of support for the Brexit Party in the European elections over the weekend will do little to ease those fears, analysts said.

"The problems that Theresa May faced will not go away with a new leader. In fact, they may get worse, because this weekend's election shows a large proportion of voters out there are still adamant they want a Brexit and don't seem minded to negotiate with Brussels," said Oanda senior market analyst Jeffrey Halley.

The results of the vote "should highlight how fractured both Parliament and the British electorate remain. The new Prime Minister will face the same issues – including a non-majority in Parliament – as his or her predecessors", Halley added. (AFP)

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