Hong Kong Stocks Fall As Markets Remain Nervous

Hong Kong stocks dipped in the morning session on Wednesday, dashing hopes of a recovery after shares inched up at the open as investors remained tense over the escalating US-China trade war.

The Hang Seng Index fell 0.4 percent, to 25,879 by the break.

On the mainland, the Shanghai Composite Index was flat at 2,777 while the Shenzhen Composite Index was down 0.1 percent, to 1,492.

Beijing's move to stabilise the yuan after it dropped below the key 7.0 per US dollar threshold helped to ease fears of a currency war despite Washington formally branding China a "currency manipulator".

"The move... to strengthen the yuan calmed markets after a drop on Monday. Emerging markets got some breathing room and rebounded", said Edward Moya, senior market analyst at Oanda.

But he warned that "trade war concerns remain very much front of mind ... at this point more details and statements from both sides are needed to inject calm into a volatile market".

Tokyo shed 0.8 percent amid safe-haven purchasing of the yen. A strong yen clouds the outlook for Japanese exporters as it reduces their profits when they are repatriated.

But other emerging markets saw gains, with Jakarta and Manila climbing around 1 percent. (AFP)

______________________________