HSI Ends In Red As New China-US Tension Adds Jitters

Hong Kong stocks finished with losses Wednesday as investors fret over a second wave of virus infections while countries begin to ease up on their lockdown measures.

The Hang Seng Index slipped 0.3 percent, to 24,180.

But on the mainland, the Shanghai Composite Index added 0.2 percent, to 2,898 while the Shenzhen Composite Index gained 0.7 percent, to 1,822.

Asian markets were mixed as tensions between the US and China added another layer of concern for traders after lawmakers in Washington proposed giving the president powers to impose fresh sanctions if Beijing does not give a "full accounting" for the coronavirus outbreak.

Tokyo ended down 0.5 percent, while there were also losses in Wellington, Kuala Lumpur, Singapore, Manila and Jakarta, with Bangkok flat.

Bu Sydney rose 0.4 percent and Seoul rallied 1 percent, with Taipei up 0.5 percent.

Mumbai surged more than 2 percent a day after Prime Minister Narendra Modi unveiled a package worth US$266 billion, or about 10 percent of India's GDP, to stimulate the economy.

"Markets' positive take on the recovery, after unprecedented fiscal and monetary stimulus, will be put to the test," Alexander Kraemer, head of cross-asset strategy at Commerzbank AG, wrote in a note.

"Market participants await confirmation that the economy will indeed start to return to normalcy" in the second half of the year.

Analysts pointed to friction between the world's top two economic superpowers that has fanned fears of a renewed trade war. (AFP)