Hong Kong, Mainland Markets Extend Losses

Hong Kong stocks ended down after a see-saw Tuesday in Asian markets, with traders following the sharp drops in the States and Europe amid concerns about US-China trade tensions.

The Hang Seng Index fell 0.3 percent, to close at 28,881.

On the mainland, the Shanghai Composite Index lost 0.5 percent, to 2,844, but the Shenzhen Composite Index was up 0.6 percent, to 1,596.

Tokyo ended up fractionally in the black on bargain-hunting late in the day, with the benchmark Nikkei 225 index gaining 3.85 points to 22,342.

This trend was repeated across the region, with early losses pared in Seoul and Sydney.

The early declines came amid reports Washington was readying a new phase in its economic confrontation with China.

President Donald Trump has threatened to strike back against China's retaliation to the US tariffs that are due to take effect July 6.

Trade frictions topped market players' concerns at the open in Asia, with heavy selling in Europe and the US continuing through to Asia after reports Trump was planning new curbs on Chinese investment.

Washington has already announced it will impose investment restrictions on Chinese companies by June 30, with the Wall Street Journal reporting that any firm that is 25 percent Chinese-held would face curbs. (AFP)