Hang Seng Index Slips Back After Healthy Start

Hong Kong shares ended the morning session sharply lower on Wednesday, with energy firms tracking a fall in oil prices.

The Hang Seng Index shed 0.9 percent, to 29,709 by the break.

On the mainland, the Shanghai Composite Index gave up 0.4 percent, to 3,186, while the Shenzhen Composite Index lost 0.3 percent, to 1,724.

The markets had got off to a healthy start on the back off Wall Street rally overnight. The S&P 500 and Nasdaq scaled all-time highs while the Dow came close after a string of better-than-forecast results from the likes of Coca-Cola, Twitter and Lockheed Martin added to a raft of other recent reports that suggest the economy is in rude health.

Markets welcomed "a really great string of earnings reports, most of them outpacing expectations, as well as some pretty good commentary on future estimates from CEOs", Jim Paulsen, chief investment strategist at Leuthold Weeden, told Bloomberg News.

"There's quite a bit of positivity carrying this to new highs."

However, while Asian dealers were generally upbeat they were unable to use the Wall Street performance to kick on in early trade, with major indexes shifting in and out of positive territory through the morning.

Tokyo headed into the break flat and Seoul slipped 0.7 percent.

However, Sydney rose 1 percent as a drop in Australian inflation raised the chances of an interest rate cut by the country's central bank. The reading sent the Australian dollar plunging 1 percent.

Singapore, Taipei and Manila each rose 0.2 percent, Wellington added 0.7 percent while Jakarta inched up slightly. (AFP)

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