Hong Kong Stocks Fall, Pound Gives Up Gains

Hong Kong stocks sank on Wednesday morning in line with an Asia-wide sell-off, with investors awaiting reaction to a report that Beijing is drawing up a plan to remove Chief Executive Carrie Lam following months of sometimes violent pro-democracy protests.

The Hang Seng index fell 0.9 percent, to 26,535.

On the mainland, the Shanghai Composite Index slipped 0.2 percent, to 2,949 while the Shenzhen Composite Index lost 0.3 percent, to 1,626.

Other Asian markets also ticked lower as investors took a step back after recent gains.

Tokyo went into the break slightly lower as investors returned from a one-day holiday, while Shanghai slipped 0.1 percent and Sydney shed 0.2 percent.

Singapore fell 0.6 percent and Seoul was off 0.3 percent, while Taipei, Manila and Jakarta were also well into the red.

Wellington tumbled 2 percent, with major construction firm Fletcher Building hit by a massive fire at a US$450 million convention centre it is building in the middle of Auckland.

With everything quiet on the China-US trade talks, attention was on Westminster where Britain's prime minister finally got MPs to agree to his EU divorce pact, but minutes later lost a vote on a truncated debate that would have passed it in just three days.

The prospect of another delay hit sterling, which fell as low as US$1.2843 on Wednesday. The unit had earlier this week broken US$1.30 for the first time in five months on hopes of averting a painful no-deal divorce. It was also lower against the euro.

In Hong Kong, the British currency slipped to HK$10.09. (AFP)

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