HSI Breaks Losing Streak, Most Asian Markets Fall

Hong Kong shares closed modestly higher on Wednesday, ending a week-long losing streak after spending much of the day in the red as investors remained tense over the escalating US-China trade war.

The Hang Seng Index edged up 0.1 percent, to 25,997.

On the mainland, the Shanghai Composite Index closed 0.3 percent, lower at 2,768 while the Shenzhen Composite Index lost 0.4 percent, to 1,483.

Most other Asian markets extended their losses despite Wall Street registering strong gains overnight.

Tokyo shed 0.3 percent and Seoul lost 0.4 percent. Mumbai was flat after India's central bank cut interest rates for the fourth time this year – in line with expectations –- as New Delhi battles sluggish economic growth and record unemployment.

But other emerging markets saw gains, with Jakarta and Manila climbing more than 1 percent.

US-China trade tensions have risen sharply since last week following Trump's latest tariffs announcement. The yuan's slump fuelled speculation that Beijing was devaluing the currency to support exporters and offset the tariffs threat, infuriating Washington.

But Beijing's move to stabilise the yuan after it dropped below the key 7.0 per dollar threshold helped to ease fears of a currency war despite Washington formally branding China a "currency manipulator".

"The move... to strengthen the yuan calmed markets after a drop on Monday. Emerging markets got some breathing room and rebounded," said Edward Moya, senior market analyst at Oanda.

But he warned that "trade war concerns remain very much front of mind... at this point more details and statements from both sides are needed to inject calm into a volatile market". (AFP)