HSI Joins Asian Retreat As Trade War Fears Linger

Hong Kong shares ended the morning session in negative territory on Monday, extending last week's sharp slide on lingering trade war fears.

The Hang Seng Index fell 0.6 percent, to 30,140 by the break.

On the mainland, the Shanghai Composite Index lost 1.6 percent, to 3,100, while the Shenzhen Composite Index dropped 0.5 percent, to 1,758.

Most other Asian markets also extended last week's worldwide plunge. Tokyo went into the break 0.4 percent lower, Singapore fell 0.5 percent and Sydney gave up 0.6 percent while Wellington was 1 percent off.

Taipei, Manila and Jakarta also fell but Seoul climbed 0.2 percent as it emerged that South Korea and the United States have reached an understanding on revising their free-trade agreement and on steel tariffs.

Fears of a trade war continue to weigh on the US dollar, which was struggling below 105 yen – its lowest level since November 2016 when Donald Trump was elected as the US president.

The weaker dollar provided support to oil prices, though, as it makes the commodity cheaper for anyone holding other currencies. (AFP)

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