Hong Kong stocks trade lower on disappointment over China-US trade negotiations

The Hang Seng Index fell 0.5 per cent to 25,393.80 as of 10.01am local time, while the Hang Seng Tech Index slumped 1.8 per cent. On the mainland, the CSI 300 Index and the Shanghai Composite Index both rose 0.5 per cent.

Investors are also keeping a close eye on the US Federal Reserve’s rate decision and the unfolding earnings season. The Fed is widely expected to keep its benchmark interest rate between 4.25 and 4.5 per cent on Thursday. Some eight companies in the Hang Seng Index are due to release interim reports this week. Among them, HSBC Holdings will likely say that second-quarter profit dropped 19 per cent from a year earlier.

Other major Asia-Pacific markets were mixed: Japan’s Nikkei 225 slipped 0.3 per cent, South Korea’s Kospi rose 0.6 per cent and Australia’s S&P/ASX 200 added 0.5 per cent.