HK stocks lose early gains while mainland banks, energy shares climb

Hong Kong equities fell on Thursday, reversing initial gains as worries about the economic impact of US President Donald Trump's trade policies overtook early optimism from a tepid reading of US inflation.

The city’s Hang Seng benchmark once dropped over 400 points to 23,198 – falling below the 20-day moving average – but later closed at 23,462, down 137 points, or 0.58 percent from the previous day’s close.

The China Enterprises Index fell 41 points, or 0.47 percent, to 8,640, while the Hang Seng Tech Index lost 97 points, or 1.67 percent, closing at 5,747.

The main board turnover was HK$233.83 billion.

Mainland banks bucked the market downturn. China Construction Bank (0939) rose 0.6 percent, Industrial and Commercial Bank of China (1398) gained 0.36 percent and Bank of China (3988) added 0.22 percent.

Energy stocks outperformed, with CNOOC (0883) rising 1.69 percent, PetroChina (0857) edging up 0.85 percent, and China Petroleum and Chemical (0386) adding 0.48 percent.

In the mainland, the Shanghai Composite Index closed at 3,358 points, down 13 points or 0.39 percent, while the Shenzhen Component Index finished at 10,736 points, shedding 107 points or 0.99 percent.

STAFF REPORTER and REUTERS