Hong Kong Stocks Finish With Losses

Hong Kong stocks closed lower on Thursday on fresh China-US tensions, while focus turns to an upcoming speech by Federal Reserve boss Jerome Powell later in the day.

The Hang Seng Index slipped 0.8 percent, or 210 points, to 25,281.

The benchmark Shanghai Composite Index rose 0.6 percent, or 20 points, to 3,350, while the Shenzhen Composite Index on the mainland's second exchange jumped 1 percent, or 23 points, to 2,261.

Markets were mixed, with a fourth successive record on Wall Street not enough to stoke a rally in Asia, while a fresh flare-up in virus cases in the region keeping dealers grounded.

The mood in Asia was more downbeat compared with earlier in the week with Bloomberg News reporting China had fired four ballistic missiles as part of a military exercise by the People's Liberation Army, a day after a US spy plane carried out a flyover.

The region is one of a number of issues that have seen China-US tensions spike in recent months. In July, Washington declared Beijing's pursuit of territory and resources there illegal, explicitly backing the territorial claims of Southeast Asian countries against China.

And on Wednesday it imposed sanctions and restrictions on 24 Chinese companies and associated officials for taking part in building artificial islands in the disputed waters.

The US Commerce Department said the firms "enabled China to construct and militarise disputed outposts in the South China Sea".

Tokyo lost 0.4 percent and Seoul retreated more than one percent while Taipei, Singapore and Manila were also in the red.

But Mumbai and Bangkok were up 0.6 percent, Sydney added 0.2 percent and Jakarta edged 0.1 percent higher.

London was flat at the open, while Frankfurt and Paris edged up 0.1 percent.

Wellington trade was halted in the morning after the exchange was hit by a third cyber attack in as many days, forcing operator NZX to carry out a probe. (AFP)