Stocks close mixed in Hong Kong and China amid mixed messages on progress of negotiations to end the ongoing US-China trade war
- After the Hang Seng lost 680 points over past four days, investors squared their short positions among selective financial blue chips
- Chinese benchmarks were mixed, as oil and tech stocks capped Shanghai Composite gains. The main gauge on the technology-heavy Shenzhen exchange fell
Hong Kong’s benchmark stock index rose, closing higher for the second day this week as investors squared off their short positions amid mixed messages emanating from the Trump administration on how talk are proceeding to resolve the trade war with China.
The Hang Seng Index rose 0.3 per cent, or by 86.8 points to 27,353.93 at the close, while the China Enterprises Index advanced 0.4 per cent to 10,445.54.
Stocks were mixed on the mainland Chinese stock markets, with Shanghai’s Composite Index rising 0.02 per cent to 2,852.99 while the Shenzhen Composite Index declined 0.5 per cent to 1,496.03.
The CSI 300, which tracks blue chips listed on the Shanghai and Shenzhen bourses, rose 0.3 per cent, or by 9.94 points, to 3,593.91.
“The mixed messages from recent news flow about the US and China trade war negotiations led investors to think that over the short term, a resolution between the two governments is unlikely,” said Linus Yip, chief strategist for First Shanghai Securities.
Adding to the uncertainty was a tweet on Thursday by US President Donald Trump, which said that Huawei Technologies could be included “in some form of, or some part of” a trade deal with China.
That tweet contradicted previous statements by senior members of Trump’s own trade delegation, including US Trade Representative Robert Lighthizer, who has sought to keep trade and national security matters separate during the negotiations.