HK, Mainland Stocks Fall As Trade War Fears Return

Hong Kong and mainland stock markets ended more than 1 percent down on Thursday as nagging worries about a China-US trade war reversed early bargain-buying.

The Hang Seng Index fell 1.4 percent, to close at 29,296.

On the mainland, the Shanghai Composite Index dropped 1.4 percent, to 2,875 and the Shenzhen Composite Index shed 2.1 percent, to 1,578.

Most other Asian markets were back in the red while worry over the world economy also sent the US dollar up against high-yielding currencies as traders sought out safer bets.

Singapore shed 0.3 percent and Seoul lost 1.1 percent, with Manila and Bangkok also more than one percent lower.

However, Tokyo ended 0.6 percent higher and Sydney gained 1 percent.

Stephen Innes, head of Asia-Pacific trading at Oanda, said markets were "unsure if we're in the calm after the storm, the lull between storms or even in the eye of the hurricane".

The greenback was sharply up against the Korean won, Australian dollar, Indonesian rupiah and Thai baht.

The New Zealand dollar was also weighed by lower expectations for the country's interest rates.

The pound continues to struggle as British Prime Minister Theresa May pushed through key Brexit legislation but still faces pressure to pick up the pace of talks with the EU ahead of a planned March withdrawal.

Oil prices were down as a dip in US stockpiles was overshadowed by concerns ahead a key Opec meeting, where kingpin Saudi Arabia and non-member Russia are pushing for an increase in output. (AFP)