HSI Joins Asian Retreat, Pound Claws Back

Hong Kong stocks ended lower on Wednesday with investors awaiting fresh cues from the China-US trade talks, but the pound enjoyed a slight uptick after the previous day's sharp losses.

The Hang Seng Index slipped 0.4 percent, to close at 28,807.

On the mainland, the Shanghai Composite Index lost 1.1 percent, to 3,026 and the Shenzhen Composite Index sank 2.3 percent, to 1,656.

Most other regional markets had enjoyed a bounce Monday and Tuesday after last week's battering, but with investors still on edge over the state of the global economy, that didn't last.

Tokyo ended one percent lower, Seoul shed 0.4 percent, Sydney gave up 0.2 percent and Singapore was off 0.8 percent.

Wellington and Manila also retreated, though Taipei, Mumbai and Jakarta were slightly higher.

The sterling saw wild fluctuations Tuesday as it hit a near two-year high on news Prime Minister Theresa May had won a last-minute revision to her agreement with the European Union.

But it then tanked to a three-week low as it was tossed out by MPs at Westminster later in the day.

Some observers suggesting the latest developments put the country a step closer to another referendum, while others say it could make a divorce without an agreement more likely.

"My tuppence is that parliament has, in their own mind, seized control of the Brexit process and will duly ask and likely get an extension to the 29 March exit date," said Oanda senior market analyst Jeffrey Halley.

"The breathing space granted will be used by whomever to renegotiate a more palatable Brexit deal for the UK. Except nobody has asked the Europeans yet. A short-term gain may yet belie long-term pain." (AFP)