HK Stocks Pare Some Losses, Asia Hit Hard

Hong Kong stocks recovered some of their heavy losses by lunch on Tuesday after opening sharply down, tracking a global sell-off amid surging US-China trade war tensions.

The Hang Seng Index fell 0.7 percent, to 25,966 by the break.

Across the border, the Shanghai Composite Index was down over 2 percent, to 2,765 while the Shenzhen Composite Index also tumbled over 3 percent, to open at 1,471.

In Tokyo, the Nikkei 225 was down 2 percent at 20,299. Sydney shed 2.6 percent, while Manila and Wellington were also down around 2 percent.

Although Chinese and US negotiators are set to reconvene in Washington in early September for another round of talks after last week's discussions in Shanghai, investors are not expecting a reprieve in the near future, analysts said.

"China is gearing up for a long trade battle with the US", said Rodrigo Catril, senior strategist at National Australia Bank.

"Recent events suggest a US-China trade deal is unlikely ... any time soon and indeed it seems reasonable to expect trade tensions to get worse before they get better."

______________________________