HSI Slips As Middle East Tensions Mount

Hong Kong stocks reversed early gains to end the morning down as traders nervously watch events in the Middle East after Donald Trump threatened military action against Russia-backed Syria.

The Hang Seng Index dipped 0.2 percent, at 30,827.

On the mainland, the Shanghai Composite Index gave up 0.2 percent, to 3,203 while the Shenzhen Composite Index lost 0.1 percent, to 1,848.

Other Asian markets also fell as traders are now turning their attention to the Middle East.

Tokyo was marginally down by the break, Sydney fell 0.2 percent and Singapore shed 0.1 percent, while Wellington, Taipei and Jakarta were all lower. Seoul was flat.

However, while investors are anxiously watching events in Syria, Kengo Suzuki and other strategists were less concerned.

However, while investors are anxiously watching events in Syria, Kengo Suzuki and other strategists were less concerned.

"Stock markets are unlikely to react massively because its negative impact on corporate earnings would be limited -- it would rather be positive for the military industry," they said in a joint commentary.

"Chances are that this problem could move markets only temporarily, considering it is unlikely to develop into a major 'war'." (AFP)

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