Hong Kong, Shanghai Stocks Reverse Course

Hong Kong stocks ended its four day rally and Shanghai stocks ended lower as investors await fresh developments in the China-US trade standoff.

The Hang Seng Index in Hong Kong shed 0.7 percent, to 28,772.

On the mainland, the Shanghai Composite Index, which had soared 5.6 percent on Monday, lost steam in the latter part of the day and ended 0.7 percent down, at 2,941. The Shenzhen Composite Index dropped 0.5 percent, to 1,549.

In Japan, the stocks closed lower, while analysts also said news of Indian air strikes in Pakistan-controlled Kashmir weighed on the market.

The benchmark Nikkei 225 index, slipped 0.4 percent, to 21,449.

Sydney sank almost 1 percent and Singapore was 0.4 percent off, with Seoul 0.3 percent lower, Wellington down 0.2 percent and Taipei flat.

Manila and Jakarta were both down while Mumbai gave up 0.6 percent and the rupee dropped a similar amount following news that Indian warplanes had crossed into Pakistani airspace across the ceasefire line in Kashmir and dropped payloads. (AFP)