HK, Shanghai Stocks Tumble As Fears Return

Hong Kong stocks dived on Friday, topping off another torrid week, as investors fret about rising trade tensions between China and the United States.

The Hang Seng Index fell 1.2 percent, to 27,946.

On the mainland, the Shanghai Composite Index tumbled 2.5 percent, to 2,882 while the Shenzhen Composite Index lost 3.3 percent, to 1,533.

Tokyo finished 0.9 percent higher, Sydney rose 0.6 percent, Manila soared more than one percent and Mumbai jumped 0.8 percent. But Singapore dropped 0.7 percent.

In light of the Wall Street rally over the last three days, Oanda senior market analyst Jeffrey Halley said investors seem "to have temporarily given up trying to predict the fluid situation that is US-China trade relations and concentrate on the here and now".

However, Rodrigo Catril at National Australia Bank said it was "hard to get too excited as the news flows on the trade front points to an escalation rather than an ease in tensions".

He said observers were suggesting the drive against Chinese telecoms companies "effectively means the president has taken the 'nuclear option' and it has now moved towards a 'fully fledged' tech war with China". (AFP)