Hong Kong Stocks End Sharply Lower

Hong Kong stocks and mainland stocks tumbled on Thursday as investors took a step back from a recent rally, brushing off a healthy batch of inflation data out of China.

The Hang Seng Index fell 0.9 percent, or 280 points, to close at 29,839.

The benchmark Shanghai Composite Index dived 1.6 percent, or 51 points, to 3,189, while the Shenzhen Composite Index sank 2.2 percent, or 38 points, to 1,740.

Other markets in the region mostly fell, with few catalysts to drive buying and investors still on edge over a brewing trade battle between the United States and Europe.

White House threats this week to hammer US$11 billion worth of EU goods with tariffs jolted markets, which have been rallying this year on optimism that China and the US were close to ending their own battle.

The warning revived concerns about Donald Trump's protectionist agenda that has taken aim at US trading partners.

Sydney lost 0.4 percent and Taipei retreated 0.6 percent. There were also losses in Jakarta, Mumbai, Manila and Bangkok.

But Tokyo reversed an early loss to end 0.1 percent up, with Wellington also up. Seoul and Singapore were barely moved. (AFP)