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Hong Kong stocks post biggest weekly loss in 3 months amid trade war fears

Hong Kong's benchmark stock index ended slightly higher..

Hong Kong's benchmark stock index ended slightly higher on Friday, but posted its biggest weekly loss in three months amid escalating trade tensions between Beijing and Washington.

The Hang Seng index rose 0.2 per cent to 29,338.70, while the China Enterprises Index lost 0.2 per cent to 11,339.87 points.

For the week, the Hang Seng lost 3.2 per cent, its worse weekly performance since late March.

Investors are increasingly worried that the US and China are heading for full-blown trade war, following the US president's fresh tariff announcement against China last week, and threats of more action if China retaliates.

The sub-index of the Hang Seng tracking energy shares dipped 0.2 per cent while the IT sector rose 0.28 per cent, the financial sector was 0.01 per cent higher and property sector rose 0.14 per cent.

The top gainer on Hang Seng was Hengan International Group Company Ltd up 3.35 per cent, while the biggest loser was PetroChina Co Ltd which was down 1.04 per cent.

China's main Shanghai Composite index closed up 0.49 per cent at 2,875.8099 points while its blue-chip CSI300 index ended up 0.45 per cent.

Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.41 per cent while Japan's Nikkei index closed down 0.78 per cent.

The yuan was quoted at 6.4955 per US dollar at 08:22 GMT, 0.02 per cent weaker than the previous close of 6.494.

As of the previous trading session, the Hang Seng index was down 2.08 per cent this year, while China's H-share index was down 2.9 per cent. As of the previous close, the Hang Seng has declined 3.85 per cent this month.

The top gainers among H-shares were Hengan International Group Company Ltd up 3.35 per cent, followed by BYD Co Ltd gaining 2.67 per cent and China Gas Holdings Ltd up by 2.52 per cent.

The three biggest H-shares per centage decliners were Air China Ltd which was down 3.34 per cent, Postal Savings Bank of China Co Ltd which fell 2.2 per cent and Great Wall Motor Co Ltd down by 1.6 per cent.

About 2.22 billion Hang Seng index shares were traded, roughly 117.8 per cent of the market's 30-day moving average of 1.88 billion shares a day. The volume traded in the previous trading session was 2.09 billion.

At close, China's A-shares were trading at a premium of 20.98 per cent over the Hong Kong-listed H-shares.

The price-to-earnings ratio of the Hang Seng index was 11.5 as of the last full trading day while the dividend yield was 3.2 per cent.

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