Trade Talk Doubts Temper HK, Shanghai Gains

Hong Kong stocks were slightly up at the end of the morning session on Thursday despite investor doubts over next week's US-China trade meeting.

The Hang Seng Index rose 0.3 percent, to 28,599 by the break.

On the mainland, the Shanghai Composite Index gained 0.3 percent, to 2,931 while the Shenzhen Composite Index rose 0.5 percent, to 1,570.

Other Asian markets were tempered after two days of gains.

Traders had "growing doubts that anything meaningful will come out of next week's face to face between US and Chinese trade delegates as non-trade-related tensions start to flare", said Stephen Innes of Vanguard Markets.

Innes said that weakness in US manufacturing would likely spill over into the services sector.

"When this happens in September or October, it will trigger one of the most significant US dollar and US asset sell signals of the year," he added.

Tokyo and Singapore were up in morning trade while Seoul and Taiwan were down.

Sydney was up 0.4 percent after Australian Prime Minister Scott Morrison vowed Canberra would be "one of the first cabs off the rank" in working towards a trade deal with Britain following its departure from the European Union. (AFP)

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