Hong Kong Recovers From Early Fall Amid Caution

Hong Kong stocks recovered from an early sell-off to end in positive territory on Thursday but investors are keeping a close eye on Washington over fears Donald Trump's protectionist drive could spark a global trade war.

The Hang Seng Index added 0.3 percent, to close at 31,541.

On the mainland, the Shanghai Composite Index was virtually unmoved, inching down 0.3 points to 3,291 while the Shenzhen Composite Index shed 0.2 percent, to 1,874.

Most other Asian markets staged a recovery from early losses but investors stayed cautious as trade war fears return to the fore, with worries Donald Trump will go full-steam ahead with his "America First" protectionist agenda.

Tokyo stocks closed modestly higher with the benchmark Nikkei 225 index edging up 0.1 percent, to 21,803.

Seoul and Wellington also closed up, having been down earlier.

But Sydney and Taipei each fell 0.2 percent, while Singapore and Jakarta lost 0.5 percent. Taipei eased 0.2 percent and Manila sank 1.5 percent.

The greenback took a hit from the yen as trade war worries sent investors chasing safe-haven assets, while a disappointing retail sales figure for February dented expectations the Federal Reserve will lift interest rates more than three times this year.

Bitcoin sank more than 10 percent to around US$7,850 – its lowest level since the start of February – after Google said will ban adverts for cryptocurrencies and initial coin offerings.(AFP)