Hong Kong, Shanghai Stocks Fall After Initial Gains

Hong Kong stocks finished the morning session with losses on Tuesday after Donald Trump threatened to ease back on the US economic relationship with China.

The Hang Seng Index dipped 0.6 percent, to 24,450.

On the mainland, the Shanghai Composite Index lost 0.3 percent, to 3,281 while the Shenzhen Composite Index fell 0.9 percent, to 2,218.

Other Asian markets ticked higher as investors edged back after last week's steep drops, while sterling struggled to bounce back after fears over Brexit trade deal talks.

Last week's harsh sell-off brought that rally to a juddering halt but analysts do not expect a retreat anything like that seen earlier in the year.

"The sell-off provides a stark reminder that with everybody holding on to the same side of the vaccine life-raft, it should not be too unexpected that when the seas turn rough, many will fall into the drink on the first significant starboard list," said Stephen Innes at AxiCorp.

"Still, investors have ample flotation thanks to the Federal reserve, and the fiscal harness would allow them to hurry back aboard with relative ease if they so choose."

Tokyo, Seoul and Sydney all rallied, while there were also gains in Taipei, Singapore, Jakarta and Wellington. (AFP)

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