Hong Kong Stocks Snap Run, Shanghai Ends Flat

Hong Kong stocks closed down on Wednesday, snapping a four-day winning streak, with nervous investors keeping tabs on developments in China-US trade talks.

The Hang Seng Index dipped 0.5 percent, to close at 29,320.

On the mainland, the Shanghai Composite Index crawled back from the red to end flat, at 3,090. The Shenzhen Composite Index regained some lost ground, and close 0.3 percent down, to 1,684.

Most Asian markets fell as investors look ahead to the end of a crucial Federal Reserve policy meeting later in the day.

Sydney fell 0.3 percent, Singapore was off 0.4 percent and Seoul flat.

However, Tokyo recovered from an early sell-off to end 0.2 percent higher, while Taipei, Manila and Jakarta also rose.

Adding to unease on trading floors is continued uncertainty surrounding Britain's drawn-out departure from the European Union.

Observers expect the exit date to be put back but there is a concern that it could be rejected, leaving Britain to crash out of the EU without a deal, which many warn could be devastating for the economy.

"For now, the pound appears to be reflecting the optimism of the market that common sense will prevail. However... that is a big assumption given the current febrile political atmosphere," said Michael Hewson, chief market analyst at CMC Markets UK.

Pound was trading at US$1.3258 and HK$10.38 in Asia on Wednesday. (AFP)