Hong Kong Stocks Claw Back, Nikkei Slide Continues

Hong Kong stocks bounced back from an early sell-off to end Thursday's morning session marginally higher, though investors continue to fret over the global economy while they are also keeping tabs on China-US trade talks.

The Hang Seng Index edged up about eight points, to 28,736 by the break.

On the mainland, the Shanghai Composite Index slipped 0.3 percent, to 3,014 but the Shenzhen Composite Index edged up 0.2 percent, to 1,657.

Other Asian markets continued to be gripped by volatility as investors grow increasingly worried about the state of the global economy.

Tokyo ended the morning 1.5 percent lower as exporters were hit by a jump in the safe-haven yen.

Seoul dropped 0.7 percent and Taipei shed 0.2 percent but Sydney rose 0.2 percent and Singapore was flat as they recovered from early losses. Manila and Jakarta were also up.

"We are worried about the short term because the Fed is as dovish as they can be in the short term," Chris Harvey of at Wells Fargo told Bloomberg TV.

"Interest rates are coming down throughout the globe, fears of recession are starting to go higher. We don't think those fears are founded – but you have to acknowledge that that's going to weigh on markets in the short term."

The pound was managing to hold its own despite another night of drama in Westminster that saw Prime Minister Theresa May offer to resign if MPs backed her Brexit plan and lawmakers reject a series of alternative options on leaving the EU. (AFP)

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