Hong Kong Stocks Tumble After Six-day Rally

Hong Kong stocks tumbled more than 1 percent on Tuesday as profit-takers moved in following a six-day rally, while investors were also looking ahead to fresh trade talks between China and the United States this week.

The Hang Seng Index dropped 1.2 percent, to close at 31,152, having risen more than 5 percent during its recent surge.

On the mainland, the benchmark Shanghai Composite Index added 0.6 percent, to 3,192 and the Shenzhen Composite Index was up 0.9 percent, to 1,839.

Sydney shed 0.6 percent, Singapore fell 0.4 percent and Seoul sank 0.7 percent, with Wellington, Taipei, Bangkok and Jakarta also lower.

However, there were gains in Manila and Kuala Lumpur.

And Mumbai's Sensex jumped 0.6 percent as Prime Minister Narendra Modi's BJP looked on course to win a key state election just a year ahead of national polls.

The increase in oil prices is helping fan inflation expectations in the United States, which has given fuel to talk that the Federal Reserve will lift interest rates three more times this year.

While the US dollar was flat against its main peers it was sharply up against most high-yielding currencies including the South Korean won, Mexican peso and Indonesian rupiah. (AFP)