Hong Kong Stocks Edge Up, Shanghai Continues Slide

Hong Kong ended slightly higher on Tuesday following the previous day's battering but investors moved uneasily as they fret over the state of the global economy.

The Hang Seng Index rose 0.2 percent, to close at 28,566.

But on the mainland, the markets continued their slide. The Shanghai Composite Index sank 1.5 percent, to 2,997 and the Shenzhen Composite Index tumbled 2.2 percent, to 1,639.

Most other Asian markets rebounded after the previous day's steep losses. Tokyo led gains, jumping more than 2 percent – having dived three percent Monday – while Sydney added 0.1 percent, Singapore put on 0.4 percent and Seoul edged up 0.2 percent.

Wellington, Taipei, Manila, Mumbai and Jakarta also rose, while Bangkok barely moved as rival camps jostled for position, hoping to form a government after Thailand's first election since a coup.

Asian markets were hammered on Monday after a drop in benchmark 10-year Treasury bond yields below those for three-month bills – for the first time since before the global financial crisis.

"Recession worries may be premature for the US, but the negative signals are consistent with the recent data," said Oanda senior market analyst Edward Moya.

In Britain, the Brexit saga took a new twist when lawmakers inflicted yet another defeat on May by voting to take control of parliamentary business that will see them hold a series of ballots on different options for leaving the EU.

While uncertainty reigns, the sterling was flat on Tuesday, with investors still hopeful Britain will avoid a no-deal Brexit, which some warn could be an economic calamity for the country. (AFP)