HSI Slips, Pound Stays Steady In Asia

Hong Kong stocks fell in the morning on Wednesday following a rally of more than 2 percent the previous day, with dealers also looking ahead to the start of the corporate earnings season.

The Hang Seng Index dipped 0.3 percent, to 26,763 by the break.

On the mainland, Shanghai Composite Index was flat in early afternoon trade, at 2,570 while the Shenzhen Composite Index was more or less flat, at 1,322.

Tokyo stocks closed lower as investors looked for direction, and the currency market remained stable during Asian trade after volatility for the British pound around a Brexit vote.

The benchmark Nikkei 225 index slipped 0.6 percent, to end at 20,442.

Asian investors appeared to have factored in the defeat in Britain's parliament for Prime Minister Theresa May's Brexit deal, which was overwhelmingly rejected by lawmakers.

The pound changed hands at US$1.2849 in early Asian trade, against US$1.2871 in New York, while the US dollar fetched 108.69 yen in Tokyo on Tuesday.

"The pound is seeing some buyback as traders factored in the British parliamentary vote" against a Brexit deal, said Rikiya Takebe, senior strategist at Okasan Online Securities, in a note.

"As the Japanese market rallied in the previous session before the rise in the US market, we are expecting trade in a narrow range today" in the Tokyo market, Toshiyuki Kanayama, senior market analyst at Monex, said in a commentary.

In Hong Kong, the pound was trading at HK$10.07. (AFP)

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