Hong Kong, Mainland Stocks Slip On Trump Threat

Hong Kong shares ended the week with a loss on Friday as investors fret about a possible trade war ahead of Donald Trump's decision on whether to impose tariffs on China.

The Hang Seng Index fell 0.4 percent, to close at 30,309.

On the mainland, the Shanghai Composite Index retreated 0.7 percent, to 3,021 and the Shenzhen Composite Index dropped 1.8 percent, to 1,691.

Tokyo ended 0.5 percent higher and Sydney added more than one percent. Taipei and Bangkok also rose.

Seoul shed 0.8 percent while Wellington was also lower.

Trump is due to make a decision Friday, with many expecting him to push through the measures, with China threatening to retaliate in kind – stoking fears of a trade war.

Tai Hui, JP Morgan Asset Management chief market strategist for Asia-Pacific, said that while a thumbs-up from Trump would not be a surprise, there were concerns that talks between the two sides have seen little progress.

He added that another worry was Trump's threatened sanctions on Canada and the European Union.

Euro selling extended into Asia after the European Central Bank said it would hold off hiking interest rates at least for another year,

The euro dived to US$1.1580 on Thursday, from above US$1.1800 earlier. On Friday in Asian trade the unit sank even further towards one-year lows. (AFP)