Hong Kong Stocks Lose Steam, Shanghai Slips

Hong Kong stocks gave up early gains to end the morning session in negative territory on Thursday, with investors keeping their focus on the upcoming release of US jobs data.

The Hang Seng Index slipped 0.1 percent, to 28,824 by the break.

On the mainland, the Shanghai Composite Index shed 0.3 percent, to 3,007, while the Shenzhen Composite Index lost 0.5 percent, to 1,592.

Other Asian markets edged up, tracking a record performance on Wall Street, as investors turned their focus to the upcoming release of US jobs data while hoping for a big Federal Reserve interest rate cut.

Talk of a reduction and concerns about the economy have seen the yield on safe haven 10-year Treasuries fall below 2 percent

"A lot of US economic data is wavering, as most key indicators are falling below trend, but the recent standouts have been labour and wage data," said Oanda senior market analyst Edward Moya.

"If the pillars of the economy begin to show some signs of weakness, this will disrupt the US consumer and support the calls for the Fed to cut in July and signal an additional one is on the way."

Tokyo climbed 0.3 percent by the break and Sydney jumped 0.6 percent.

Singapore was up 0.3 percent, Wellington added 0.2 percent and Taipei was 0.4 percent stronger though Seoul was marginally lower. (AFP)

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