Hong Kong stocks remain flat amid tariffs, postal drama

Hong Kong stocks closed slightly lower on Wednesday despite a morning session rally amid market concerns of rising Sino-US trade tensions.

The benchmark Hang Seng Index once slumped to 20,417 points before rallying to 20,827, dragged down by damped market sentiment as a tariff war looms. It closed at 20,597, 0.93 percent or 192 points lower from Tuesday's close, after remaining flat in the afternoon session as the US Postal Service suspended the delivery of packages from China and Hong Kong.

The turnover reached HK$192.2 billion, hitting a nearly one-month high, boosted by the mainland market’s reopening after the Lunar New Year holiday.

The Hang Seng Tech Index went down by 0.95 percent to 4,930 points.

Airline shares dropped as mainland carriers doubled their fuel surcharge for domestic flights. The big three state-owned airlines fell, with Air China (0753) down 4.4 percent to HK$4.56, China Southern Airlines (1055) by 3.31 percent, and China Eastern Airlines Corporation (0670) by 2.85 percent.

Mainland-listed Eastern Air Logistics also lost 10 percent, dropping to its limit-down.

E-commerce stocks remained flat after the US Postal Service paused inbound international packages from China and Hong Kong posts.

Alibaba (9988) lost 0.1 percent with its share price settling at HK$97.55.

In China, the Shanghai Stock Exchange Index dropped 21 points to 3,229 points, while the Shenzhen Component Index rose 8 points to 10,164 points.

STAFF REPORTER