HSI In Red As Investors Fret Over US Stimulus Rift

Shares were slightly lower going into the break on Friday following a healthy week, with investors jolted by a stalemate in US stimulus talks.

The Hang Seng Index slipped 0.2 percent, to 25,183.

On the mainland, the Shanghai Composite Index dropped 0.2 percent, to 3,315 while the Shenzhen Composite Index lost 0.1 percent, to 2,215.

Tokyo ended the morning with small gains and Sydney added 0.5 percent.

Taipei was marginally higher but Seoul dropped more than 1 percent, while there were also losses in Singapore, Manila and Wellington.

Investors will be keeping a close eye on talks at the weekend between China and the US that will review the trade pact signed in January, though expectations are for the deal to be kept in place, despite increasing tensions between the two sides.

Traders were given a weak lead from Wall Street, where the stimulus struggle trumped better-than-expected data showing fewer than a million people claimed jobless benefits last week for the first time since the pandemic struck in March.

"After stalling over several weeks, US jobless (figures) have begun to decline again, suggesting the US labour market is starting to improve, notwithstanding the economic impact from the containment measures introduced to combat the Covid-19 outbreak," said Rodrigo Catril at National Australia Bank.

But he warned: "Ironically, an improving labour market may ease the pressure on US politicians to come up with a new stimulus plan. (AFP)

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