HK stocks down as investors gauge Sino-US trade deal

Hong Kong and mainland stocks fell on Thursday, led by declines in the rare-earth and tech sectors, as markets struggled to sustain positive momentum from Sino-US trade talks that provided few concrete details.

A deal getting the fragile truce in the trade war back on track was reached after negotiators from Beijing and Washington agreed on a framework covering tariff rates, US President Donald Trump said on Wednesday.

The deal removes Chinese export restrictions on rare-earths minerals and allows Chinese students access to US universities, but many specifics and detailed terms were absent, leaving investors cautious.

China’s blue-chip CSI300 Index fell 0.6 percent from a three-week high touched in the previous session. Hong Kong’s benchmark Hang Seng index lost 0.7 percent to pull back from its highest level in nearly three months.

The CSI Rare Earth Index slipped 0.8 percent from a seven-month high, and the semiconductor sector subindex slid more than 1 percent.

In Hong Kong, the Hang Seng Tech Index lost 1.5 percent in early trades. (Reuters)