Hong Kong stocks slip over escalation in Sino-US tariff spat

Hong Kong stocks closed lower on Wednesday, tracking a decline in global markets, as China's mixed bag of trade data and fears of an escalation in the Sino-U.S. tariff spat stoked an investor exodus from riskier assets. ** At the close of trade, the Hang Seng index was down 1.2 per cent at 29,003.20 points. The Hang Seng China Enterprises index closed 1.5 per cent weaker. ** The sub-index of the Hang Seng tracking energy shares closed 1.8 per cent weaker, while the IT sector ended 0.4 per cent firmer, the financial sector ended 1.7 per cent lower and the property sector closed down 0.6 per cent.

China's exports unexpectedly shrank in April, though imports surprised with their first increase in five months, painting a mixed picture of the economy. Investors had hoped the data would add to signs that the country's economy is steadying. ** Chinese Vice Premier Liu He is due to visit Washington on Thursday and Friday for trade talks in a last-ditch bid to avert a sharp increase in tariffs on Chinese goods ordered by U.S. President Donald Trump.

U.S. officials have accused China of reneging in the past week on substantial commitments made during months of negotiations aimed at ending their trade war, prompting Trump to issue a new deadline to raise tariffs on $200 billion worth of Chinese goods to 25 per cent from 10 per cent.

China's main Shanghai Composite index closed down 1.1 per cent. The blue-chip CSI300 index lost 1.4 per cent. ** Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.8 per cent, while Japan's Nikkei index closed down 1.5 per cent. ** The top gainer on the Hang Seng was Tencent Holdings Ltd, which ended 1.1 per cent firmer after gaining regulatory approval and rolling out a new video game.

The biggest loser on the index was Techtronic Industries Co Ltd, down 4.4 per cent. ** The three biggest H-shares percentage decliners were New China Life Insurance Co Ltd and China National Building Material Co Ltd, both closed 4.1 per cent lower, followed by PICC Property and Casualty Co Ltd, which ended 3.8 per cent lower. ** About 2.25 billion Hang Seng index shares were traded. The volume traded in the previous trading session was 2.06 billion. ** At close, China's A-shares were trading at a premium of 22.78 per cent over the Hong Kong-listed H-shares.