China, Hong Kong stocks flat as markets eye trade war developments

CHINA-STOCKS/MIDDAY:China, Hong Kong stocks flat as markets eye trade war developments

By Jiaxing Li

China, Hong Kong stocks flat as markets eye trade war developments

HONG KONG, Sept 16 - China and Hong Kong shares were largely flat in choppy trading on Tuesday as investors grappled with uncertainty over the future of U.S.-China relations.

** At the midday break, the Shanghai Composite index pared early gains to edge 0.1% lower at 3,856.45 points.

** China's blue-chip CSI300 index also shed gains from the opening hour to trade 0.4% lower.

** Sentiment remained cautious as investors weighed uncertainties around U.S.-China trade talks. Officials from both countries said on Monday that they have reached a framework deal on TikTok pending confirmation in a Friday call between U.S. President Donald Trump and his Chinese counterpart Xi Jinping.

** That follows China's accusation that Nvidia violated the country's anti-monopoly law on Monday, the latest escalation in its trade war with the United States.

** "Stock indexes are likely to remain range-bound in the short term" as markets focus on U.S.-China trade talks and the Fed's meeting later this week, Nanhua Futures analysts said in a note to clients.

** Weighing on the onshore markets, the rare-earths sector index weakened 2.2% on Tuesday. The financial sector sub-index dropped 0.5% and the consumer staples sector slipped 1%.

** In Hong Kong, the Chinese H-share index listed in Hong Kong, the Hang Seng China Enterprises Index edged up 0.1% to, while the Hang Seng Index was also up 0.1% at 26,466.45.

** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.6%, while Japan's Nikkei index was up 0.3%.

This article was generated from an automated news agency feed without modifications to text.