HSI Edges Up Despite Asian Market Gloom

Shares finished with a slight gain on Friday, bringing another tough week to a close but investors remain on edge owing to rising China-US tensions as the British pound edged up after a hammering on the previous day.

The Hang Seng Index rose 0.3 percent, to 27,353.

On the mainland, the Shanghai Composite Index was barely moved, at 2,852, while the Shenzhen Composite Index slipped 0.5 percent, to 1,496.

Having taken a hammering on Thursday – with energy and tech firms among the worst hit – most other Asian markets continued to struggle on Friday.

Tokyo closed 0.2 percent lower, Sydney lost 0.6 percent and Seoul fell 0.7 percent. Singapore and Wellington dipped 0.4 percent and Manila gave up 0.7 percent.

Mumbai climbed 0.9 percent, Taipei and Singapore each added 0.2 percent, and Jakarta and Bangkok both edged up slightly.

Adding to investors' worry was weak economic data in Europe and the United States that reinforced concerns about a global slowdown, with the IMF warning the trade standoff will "jeopardise" 2019 growth.

"The trade war is going to cause growth to slow, both in the US and China, and therefore globally – there is no doubt about that," Komal Sri-Kumar, founder of Sri-Kumar Global Strategies, told Bloomberg TV.

"The trade war is taking on new dimensions."

Sterling inched higher but continued to wallow around four-month lows against the US dollar with Prime Minister Theresa May on the precipice after her revised Brexit deal was widely criticised and much of her party calling for her to step down.

"May's departure is fully priced into the pound but what follows from that is not, in particular once we -- presumably -- have a 'hard Brexit' Tory holding the prime ministership," said National Australia Bank's Ray Attrill.

"Markets will almost inevitably have to move to price in a much greater chance of a no-deal Brexit even if this is not what ultimately eventuates, suggesting lower levels ahead for all things sterling."

The sterling edged up to US$1.2673 from US$1.2660 and was fetching HK$9.94. (AFP)