Hong Kong, Mainland Markets Dip Over China-US Rift

Hong Kong shares finished lower on Thursday as a weak US jobs report and geopolitical tensions overshadowed coronavirus vaccine hopes.

The Hang Seng Index retreated 0.5 percent, to 25,007.

On the mainland, the Shanghai Composite Index dropped 0.6 percent, to 3,384 and the Shenzhen Composite Index slipped 0.8 percent, to 2,301 after Washington's decision to impose fresh restrictions on Chinese diplomats in the US, the latest salvo in a long-running standoff between the two countries.

Asian equities were mixed following another blow-out session on Wall Street as the S&P 500 and Nasdaq clocked record highs, and the Dow jumped an impressive 1.6 percent.

Analysts pointed out that gains were beginning to broaden out from the technology giants who have helped power much of the past months' surge.

"Quite why the rally has broadened out is frankly anyone's guess, though both the 'rates lower for longer' and 'vaccine round the corner' pretexts received some (small) succour overnight," said National Australia Bank's Ray Attrill.

Tokyo, Seoul, Sydney and Wellington all posted big gains, while Taipei, Manila and Bangkok were also higher. Mumbai and Singapore were in the red.

Traders were keeping tabs on Capitol Hill, hoping US lawmakers will at some point reach an agreement on a new stimulus package, though expectations are not high. (AFP)