Hong Kong Stocks Finish Lower

Hong Kong stocks dropped on Wednesday as optimism over the China-US trade talks were dented by concerns about a brewing tariffs row between Washington and the European Union.

The Hang Seng Index eased 0.1 percent, or 37 points, to close at 30,119.

The benchmark Shanghai Composite Index ended just 2 points up at 3,241, while the Shenzhen Composite Index, which tracks stocks on China's second exchange, dipped 0.2 percent, or 3 points, to 1,779.

Tokyo ended off 0.5 percent, while there were also losses in Wellington and Jakarta.

However, Seoul rose 0.5 percent and Singapore gained 0.1 percent with Sydney, Taipei, Manila and Bangkok also in the ascendance.

A warning from US President Donald Trump's administration that it would impose levies on more than US$11 billion of European imports have jolted investors.

The development – linked to EU subsidies for planemaker Airbus that Trump says hurt US giant Boeing – stoked concerns about the White House's hardline protectionist agenda that has taken aim at its biggest trading partners since the tycoon's election.

It also comes despite negotiators holding a series of meetings since last year ahead of proposed trade talks to resolve the dispute.

"The primary market issues are that this could unwind much of the positivity around a comprehensive trade resolution as the US trade hawks continue to apply pressure on longtime allies," said Stephen Innes at SPI Asset Management.

"Friend or foe, the latest headline suggests no country is exempt from the wrath of President Trump's trade agenda", he added. (AFP)