HSI Sheds Over 400 Points As Asian Markets Slide

Hong Kong and Shanghai stocks tumbled on Wednesday as Donald Trump's decision to press ahead with putting tariffs on Chinese goods fanned fresh trade war fears, while dealers were also spooked by political turmoil in Italy.

The Hang Seng Index sank 1.4 percent or 428 points, to 30,056.

On the mainland, the Shanghai Composite Index plunged 2.5 percent, to 3,041 and the Shenzhen Composite Index dropped 2.8 percent, to 1,736.

Most Asian equities tumbled while the euro was stuck around 10-month lows.

Tokyo ended 1.5 percent down while Sydney gave up 0.5 percent, Singapore dived 1.9 percent and Seoul was 2 percent lower. Taipei, Kuala Lumpur and Manila were also sharply down.

Investors were also been spooked by Donald Trump's decision on Tuesday to press ahead with imposing tariffs on Chinese goods despite ongoing talks to resolve the dispute.

US Treasury yields have tumbled as traders flock to assets considered safe -- yields go down the more the bonds are in demand -- while the yen, a go-to unit in times of turmoil, rallied.

High-yielding, riskier, currencies from the Korean won to the Indonesian rupiah tumbled. (AFP)