HSI Drops As Trade War Jitters Continue To Rule

Hong Kong shares sank on Wednesday as investors fretted over the US-China trade war and its implications for the global economy.

The Hang Seng Index fell 0.6 percent, to close at 27,235.

On the mainland, the Shanghai Composite Index closed 0.2 percent higher, at 2,914 while the Shenzhen Composite Index was flat at 1,541.

Tokyo sank 1.2 percent, while Seoul also plunged 1.3 percent while Sydney slipped 0.7 percent and Singapore edged down 0.4 percent.

Traders were nervous as economists say the trade dispute between China and the US will have grim implications for consumers, who will have to bear the costs of punitive tit-for-tat tariffs.

Fears over the US-China trade war also hit oil markets, where prices sank, coming after crude suffered its worst loss of the year last week.

"The dark clouds hanging over oil are unlikely to clear during today's session", said Oanda senior market analyst Jeffrey Halley.

"Oil will struggle to maintain any rally in the near-term today and may be vulnerable to a deeper pullback if the Asian stock market sell-off accelerates." (AFP)