HSI Ends Flat After A Volatile Day, Shanghai Up

Hong Kong stocks recovered from an early sell-off to finish flat on Thursday, though concerns over the China-US trade stand-off continue to keep investors on edge.

The Hang Seng Index ended slightly up, gaining six points to 28,275.

On the mainland, the Shanghai Composite Index gained 0.6 percent, to 2,955 and the Shenzhen Composite Index rose 0.4 percent, to 1,584.

Sydney put on 0.7 percent and Singapore added 0.2 percent. Wellington and Mumbai were also up.

Tokyo was rooted in the red, however, closing 0.6 percent lower, while Seoul and Manila lost more than 1 percent and Taipei dropped 0.8 percent. Bangkok and Jakarta also slipped.

Investors were jolted in the morning after the US President Donald trump issued an executive order, citing national security grounds, that effectively bars Chinese giant Huawei from the US market.

"Earlier, the US Commerce Department had added Huawei to a list of entities that prohibits them from acquiring US-made technology and components without a government licence," said Oanda senior market analyst Jeffrey Halley.

"If that's not an escalation in trade tensions, then I don't know what is."

In Hong Kong, ZTE – another Chinese telecoms equipment provider – shed more than six percent after the Trump move. (AFP)