Hong Kong And Shanghai Stocks Slump, Mumbai Soars

Shares tumbled in Hong Kong and Shanghai on Thursday as traders fret about growing tensions between China and the US, with tech and energy firms among the worst performers.

The Hang Seng Index dived 1.6 percent, to 27,267.

On the mainland, the Shanghai Composite Index sank 1.4 percent, to 2,852, while the Shenzhen Composite Index lost 2.4 percent, to 1,503.

The retreat was across Asia, while the pound hit a fresh four-month low on Brexit worries and energy firms were battered by plunging oil prices.

Tokyo ending down 0.6 percent. Taipei was 1.4 percent off while Seoul shed 0.3 percent and Manila fell 0.5 percent.

"Trade is still front and centre for equity markets with the mood looking increasingly downbeat," said Neil Wilson, chief market analyst at Markets.com. "It rather seems the US and China are hunkering down for the long haul – a new long march."

However, Mumbai's Sensex soared more than 2 percent to break the 40,000 for the first time ever as traders welcomed polls indicating business-friendly Prime Minister Narendra Modi's BJP were on course to win another majority.

Forex traders were offloading the pound as Prime Minister Theresa May faces being ousted after her revised plan to push through her Brexit agreement faced a barrage of criticism making it unlikely to be passed by MPs.

The British currency slipped to US$1.2615 from US$1.2661 on Thursday while it was fetching HK$9.91.

Energy companies were taking a hit after oil prices tanked on news of another sharp rise in US inventories, which added to worries about demand. (AFP)