- Pacific equities are recoiling ahead of the US-China trade delegation.
- With Japan on holidays a key provider of market liquidity is missing from the field.
Asia stocks are slipping lower as traders get uneasy about the upcoming US-China trade negotations, with the Hong Kong Hang Seng index leading the pack lower, down almost 1.5% on the day, bottoming out at 30,050.00. The financial and technology sectors are the worst-hit on the Hang Seng, with technology down almost 2%. The US has a major bone to pick with China regarding technology, accusing China of stealing American intellectual property and key techonology. China denies the allegations outright and has already stated they will ignore or reject any attempts to make them alter their technology sector.
Elsewhere in China, the Shanghai and Shenzen composites are down half a percent and 0.8% respective, While the MSCI broad Asia Pacific excluding Japan index is down 0.4% on the day. Japanese markets are closed today for the Japanese national holiday, Constitution Day, and will be returning to cap off the week on Friday.
Hang Seng 50 levels to watch
Hong Kong's major index of 50 key equities has been forming a sideways triangle through 2018, and the index has roughly consolidated through April's acton, sticking close to the 30,000.0 level. A selloff into 29,800.0 could see a further collapse into February's lows near 29,030.0, while bulls will be looking to carry the index back over April's highs near 31,000.0 to challenge 2018's highpoint at 33,500.0.
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