China stocks ease as investors ponder over earnings; Hong Kong up

China stocks slipped on Tuesday, as investors chewed over the third-quarter corporate earnings, amid a cooling economy hit by the Sino-U.S. trade war. The CSI300 index fell 0.2% to 3,873.23 at the end of the morning session, while the Shanghai Composite Index lost 0.1% to 2,936.99.

U.S. President Donald Trump on Monday said efforts to end a U.S. trade war with China were going well as the world's two largest economies continued to battle over trade and politics across the world despite heralding a long-awaited truce this month.

Meanwhile, China is seeking $2.4 billion in retaliatory sanctions against the United States for failing to comply with a World Trade Organization ruling in a case that highlights White House complaints about the global trade body. Investors sought more clues from corporate results as the third-quarter earnings come close to an end to gauge the city's corporate health, amid a slowing economy and to see the impact of Beijing's stimulative measures.

Any future support for the stock market would come from Beijing's hedging policies and reforms that beat market expectations, as overall corporate results in the third quarter would be basically in line with falling GDP growth, Zhou Longgang, an analyst with Huachuang Securities, noted in report. By the lunch break, the CSI300 banks index dropped 0.6%, led by Ping An Bank falling 3.1% as the lender posted slower growth in the third quarter.

On the other hand, tech players rallied, with an IT index rising 0.8%, bolstered by solid earnings from industry leaders. Beijing is expected to continue strong support for its tech sector in a bid to seek technological self-sufficiency as more companies were blacklisted by the U.S. amid the trade war. In Hong Kong, the Hang Seng index added 0.2% to 26,765.75, while the Hong Kong China Enterprises Index lost 0.2% to 10,521.66. Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.41% while Japan's Nikkei index was up 0.25%.

The yuan was quoted at 7.0771 per U.S. dollar, 0.03% weaker than the previous close of 7.075. ** So far this year, the Shanghai stock index is up 17.87%, while China's H-share index is up 4.1%. Shanghai stocks have risen 1.19% this month. As of 04:24 GMT, China's A-shares were trading at a premium of 28.92% over the Hong Kong-listed H-shares.