Hong Kong Stocks Slip On Chinese Factory Data

Hong Kong shares fell on Tuesday, eroding most of the previous day's gains, following disappointing Chinese factory data, with tech and energy firms among the biggest losers.

The Hang Seng Index shed 0.7 percent, to close at 29,699.

On the mainland, the Shanghai Composite Index gained 0.5 percent, to 3,078.34, while the Shenzhen Composite Index added 0.7 percent, to 1,636.

The mainland market was boosted by bargain buying after steep losses in previous days and this helped offset the worrisome factory data.

"Today's ... data suggest the strong pace of March activity is unlikely to continue," Michelle Lam, a greater China economist at Societe Generale SA, told Bloomberg News.

"Nevertheless, activity has at least gained more traction compared to the turn of the year. The feed-through of tax cuts should put the economy on a stable footing going forward."

Eyes turn to Beijing this week with top negotiators from the US in the capital for another round of talks with their Chinese counterparts to end their debilitating trade row, with expectations a deal will eventually be done.

Oanda senior market analyst Edward Moya said the agreement could be signed off by Donald Trump and Xi Jinping as early as next month if Treasury Secretary Mnuchin and US Trade Representative Lighthizer flag progress on a number of issues including intellectual property and forced technology transfer.

Regional stock markets were mixed with Seoul down 0.6 percent, Sydney off 0.5 percent, Singapore losing 0.3 percent and Mumbai 0.5 percent off. Wellington, Taipei, Jakarta and Manila gained. (AFP)