HSI Stays In Black Despite Rising China-US Tensions

Hong Kong stocks ended the morning with gains on Thursday following a steep drop the day before, with investors growing concerned about a fresh flare-up in China-US tensions.

The Hang Seng Index rose 0.4 percent, to 25,151.

But the benchmark Shanghai Composite Index slipped 1.2 percent to 3,293 while the Shenzhen Composite Index fell 1.4 percent, to 2,220.

Other Asian markets were mixed as investors juggled hopes for a new stimulus deal in Washington with concerns about the virus.

Sydney gained 0.2 percent, a day after both fell more than 2 percent, while Jakarta added 0.7 percent and Singapore edged 0.3 percent higher.

But Seoul, Taipei and Manila were all down.

"The escalation in US-China tensions is a reminder of the headline risk faced by investors during the upcoming US election campaign," said AxiCorp's Stephen Innes.

"The US and China have become increasingly combative in their views this year. The markets better get used to it because there is more of that to come and even without Trump in the White House."

However, he added: "So long as the deteriorating political scrim does not drive economic fragmentation between the world's largest economies, the political bruhaha remains a tempest in a teapot." (AFP)

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