Oct 5 (Reuters) – Hong Kong stocks fell for a fourth straight session on Friday, dragged by a selloff in technology stocks on fears that these companies will be the latest casualties in the escalating U.S.-China trade war. ** The Hang Seng Index was down 0.42 percent at 26,512.65, while Chinese H-shares listed in Hong Kong fell 0.47 percent to 10,497.99.
China’s financial markets are closed for the National Day holiday and will resume trade on Oct. 8. ** Shares in Lenovo Group Ltd and ZTE Corp plunged on Friday, hurt by concerns their sales could suffer in the wake of a Bloomberg report that U.S. companies’ systems had been infiltrated by malicious computer chips inserted by Chinese spies.
The sub-index of the Hang Seng index tracking the IT sector dipped 2.14 percent. The sub index for IT hardware fell by 5.45 percent.
By lunch time, Lenovo Group, the second-most traded stock this morning, has declined 17.62 percent. Tencent, the most traded, was down 1.4 percent. ZTE, which was earlier caught in the trade war crossfire, fell by 11.41 percent.
If confirmed, a compromise in the Asian supply chain could prompt the United States to boycott tech equipments in the region, Sue Trinh, head of Asia FX Strategy at RBC Capital Markets, wrote in a memo. ** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.71 percent, while Japan’s Nikkei index was down 0.47 percent. ** The three biggest H-shares percentage losers were Guangzhou Automobile Group Co Ltd, which fell 2.54 percent, ZhongAn Online P & C Insurance Co Ltd, which lost 2.15 percent, and China Huarong Asset Management Co Ltd, down by 1.45 percent.
The top gainers among H-shares were China Mobile Ltd , up 2.31 percent, followed by China Gas Holdings Ltd , gaining 2.32 percent, and CITIC Ltd, up by 1.90 percent. China Mobile was also the top gainer on Hang Seng. (Reporting by Noah Sin; Editing by Subhranshu Sahu)