Hong Kong Stocks Fall As China-US Tiffs Continue

Hong Kong shares were more than 1 percent lower after the morning session on Thursday following a recent rally, with investors fretting over China-US tensions.

The Hang Seng Index fell 1.6 percent, to 24,692.

On the mainland, the Shanghai Composite Index fell 0.4 percent to 3,364, while the Shenzhen Composite Index lost 0.9 percent, to 2,297.

Other Asian markets were mixed following a two-day rally, with nervous investors keeping an eye on stuttering stimulus talks in Washington.

Tokyo went into the break 0.3 percent lower. Wellington also fell, though Sydney, Seoul, Taipei, Singapore and Jakarta all rose.

Manila was also slightly higher as traders looked past data showing the Philippines economy contracted 16.5 percent in the second quarter, the worst on records dating back to 1981 and putting it into recession.

Traders worry China-US rows could lead to a renewal of their economically painful trade war. Beijing on Wednesday warned that a planned visit by US healthy secretary Alex Azar to Taiwan was a threat to "peace and stability".

"China will likely interpret the trip as a provocative move ahead of planned US-China trade talks on August 15," said Stephen Innes at AxiCorp, adding that the US move was seen as part of Trump's anti-China drive leading into the election.

"Even if trade war risk fades, President Trump will be rushing the podium with his latest technology beef in hand, and the nonstop barrage of China browbeating will likely extend into the November election." (AFP)

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