Hong Kong Stocks falls 0.35%

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Capital Market
Last Updated : Nov 23 2018 | 2:04 PM IST
Headline shares of the Hong Kong market closed down on Friday, 23 November 2018, as risk aversion selloff triggered due to absence of any fresh cues from Wall Street, which was closed overnight for the Thanksgiving holiday. Lingering worries about U.S.-China trade tensions and the uncertainty surrounding Brexit also weighed on sentiment. At closing bell, the Hang Seng Index declined 91.73 points or 0.35% to 25,927.68. The Hang Seng China Enterprises Index dropped by 57.90 points or 0.55% to 10,388.53. Forty blue chips, among the 50, rose, and 10 fell.

Concerns over trade tensions continue to build up ahead of the meeting between Donald Trump and Xi Jinping that is to happen on the side-lines of the G-20 meeting in Argentina next week.

Investors brushed aside claims from Donald Trump he was hopeful of resolving the bitter trade dispute between the US and China. China wants to make a deal. If we can make a deal, we will," Trump said, adding he was "very prepared" for the meeting. But the fractious recent APEC summit -- which for the first time ever failed to issue a joint statement after US-China trade tensions boiled over -- has set an ominous tone for the high-stakes summit in Buenos Aires. The world's top two economies have been locked in a trade war for months, with the US imposing punitive tariffs on Chinese goods worth $250 billion per year. In retaliation, China imposed tariffs on $110 billion of US goods. Washington has threatened to toughen measures even further if the issue is not resolved before January. Speculation is growing that the People's Bank of China will again cut the level of cash that banks must hold in reserve, in a fresh bid to lower financing costs and blunt the economic impact of the trade dispute with the US.

Shares of telecom and technology issues bore the brunt of losses, after report in The Wall Street Journal that said the U.S. has been trying to persuade its foreign allies to avoid using China's Huawei Technologies Co.'s telecoms equipment, citing cybersecurity concerns. News of pressure over Huawei comes just ahead of trade talks between U.S. President Donald Trump and Chinese President Xi Jinping atthe G-20 summit in Argentina next week. U.S. officials warned Americans not to buy Huawei devices in February, saying they could be used to spy on users. Earlier this year, lawmakers introduced the Defending U.S. Government Communications Act, which would ban government agencies from using equipment from ZTE and Huawei.

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First Published: Nov 23 2018 | 1:48 PM IST