HSI Falls As Investors Worry Over G20 Summit, Iran

Hong Kong shares fell more than 1 percent on Tuesday, hit by concerns over rising Iran-US tensions and as investors await this week's crucial trade talks between Donald Trump and Xi Jinping.

The Hang Seng Index sank 1.2 percent, to 28,185.

On the mainland, the Shanghai Composite Index fell 0.9 percent, to 2,982 while the Shenzhen Composite Index lost 1 percent, to 1,560.

Tokyo dropped 0.6 percent off, with profit-taking after a recent rally adding to selling pressure.

Sydney was down 0.1 percent, Seoul and Singapore each retreated 0.3 percent and Taipei lost 0.8 percent. Still, Wellington, Manila, Bangkok and Jakarta were slightly higher.

Safe haven investments climbed, with gold breaking US$1,430 for the first time since September 2013, with a softer dollar adding support, while the yen – a go-to unit in times of turmoil – was up against the greenback.

Traders were also keeping tabs on developments in the China-US trade standoff as the leaders prepare for crunch talks on the sidelines of the G20 in Osaka.

The greenback was down against most other currencies, weighed by expectations the Federal Reserve will cut interest rates as soon as July, while bitcoin held above $11,000 after breaking the marker for the first time in 16 months.

Despite the rising fears of conflict between the US and Iran crude prices extended the morning's losses, with David Madden, market analyst at CMC Markets UK, saying "traders began to fear that demand for oil will fall". (AFP)