Hong Kong stocks fall for 4th day on Wall Street slide, geopolitical tensions

Hong Kong stocks fell for a fourth straight session to a two-week low on Wednesday, following an overnight drop on Wall Street, while China shares rebounded. ** Market sentiment remains subdued as the Sino-Japan diplomatic crisis deepens, adding to economic worries with no policy easing in sight.

Hong Kong stocks fell for a fourth straight session to a two-week low on Wednesday, following an overnight drop on Wall Street, while China shares rebounded.

** Market sentiment remains subdued as the Sino-Japan diplomatic crisis deepens, adding to economic worries with no policy easing in sight. ** Hong Kong benchmark Hang Seng closed down 0.4% logging a four-day losing streak.

** In mainland China, the blue-chip CSI300 Index climbed 0.4%, while the Shanghai Composite Index bounced 0.2%. ** Risk appetite was weak after U.S. stocks fell for a fourth day on Tuesday amid valuation worries and doubts over an interest rate cut next month.

** The mood was further soured by deteriorating relations between Beijing and Tokyo over Japanese Prime Minister Sanae Takaichi's comments on Taiwan. ** Escalating geopolitical tensions could add fresh pressure to China's struggling economy.

** "After six months of improving sentiment, China's growth outlook took a sharp turn in November," BofA Securities said in its latest Asia Fund Manager Survey, where 29% of respondents now expect a weaker economy. "Despite this, investors foresee limited policy easing." ** But investors bid up China-listed aquatic stocks, betting they will benefit from the China-Japan spat.

** Shares of CNFC Overseas Fisheries, Zhanjiang Guolian Aquatic Products, Dahu Health Industry and Shandong Oriental Ocean Sci-Tech surged after media reports that China notified Japan it will ban all imports of Japanese seafood. ** Meanwhile, energy and financial shares rose while real estate and media stocks dropped.

** In Hong Kong, tech shares led the decline. Xiaomi plunged 5% after the company warned of further hikes in smartphone prices next year due to soaring memory chip costs. Chinese search engine Baidu eased 0.2% after reporting a 7% fall in quarterly revenue.