HSI Sheds Early Losses, But Investors Jittery

Hong Kong stocks ended on Thursday morning with slight gains, rebounding from an early sell-off, but investors remain on guard over the simmering China-US trade row.

The Hang Seng Index rose 0.2 percent, to 28,336.

On the mainland, the Shanghai Composite Index also overcame early losses and rose 0.2 percent, to 2,947 and the Shenzhen Composite Index gained 0.2 percent, to 1,581.

Tokyo finished the morning down 0.6 percent.

Singapore retreated 0.3 percent, Seoul sank 0.7 percent and Manila shed 0.8 percent. Taipei was also off, though Sydney edged up slightly and Wellington put on 0.6 percent.

The US dollar fell against its major peers and most higher-yielding currencies, with speculation swirling that the Federal Reserve could cut interest rates to fend off the effects of the trade war and slowing economic growth.

Such talk comes just months after some commentators had been predicting up to three hikes this year.

"Depending on how long this standoff with China lasts, that impacts growth for longer and might force the Fed's hand," Esty Dwek, at Natixis Investment Managers, told Bloomberg TV.

"I wouldn't expect any big change in the short term, but the possibility of a cut much later in the year has risen." (AFP)

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