HSI Slips On China-US Tiffs, But Asian Markets Rally

Hong Kong stocks closed lower on Thursday following recent gains and on concerns about China-US tensions, while investors are keeping a wary eye on US stimulus talks.

The Hang Seng Index slipped 0.7 percent, to 24,930.

On the mainland, the Shanghai Composite Index added 0.3 percent, to 3,386 while the Shenzhen Composite Index slipped 0.6 percent, to 2,304.

Asian markets were mostly higher, with Seoul, Singapore, Mumbai and Jakarta more than 1 percent up, while Sydney put on 0.7 percent.

Taipei, Bangkok and Wellington were also up, but Tokyo ended down 0.4 percent.

Manila climbed more than 1 percent as traders looked past data showing the Philippines economy contracted 16.5 percent in the second quarter, the worst quarter on records dating back to 1981 and putting it into recession.

Observers said there was an expectation that the economy has suffered the worst and would begin picking up in the second half of the year.

Analysts said there are broad expectations that upcoming elections will push US Congress to eventually reach a deal, while Donald Trump has raised the prospect of using an executive order to push through tax cuts and a ban on evictions.

"For now our sense is that no politician in the US wants to be blamed for a failure to deliver a new round of stimulus ahead of the elections in November," said National Australia Bank's Rodrigo Catril.

"US Treasury Secretary (Steve) Mnuchin remarked that while differences remain, at least there was an agreement to set a timeline. So the story continues to be about when the deal will be agreed, rather than if." (AFP)