China stocks wobble on looming Sino-US trade talks
At the midday break, the Shanghai Composite index declined 0.3% and the blue-chip CSI 300 index weakened 0.2% after both moved in narrow ranges throughout the day.
Hong Kong's benchmark Hang Seng Index closed up 0.3% after fluctuating between gains and losses, to stand near a five-week high.
Sentiment was cautious ahead of the Sino-US trade talk this weekend in Switzerland, where top economic and trade officials from the two countries are expected to take steps toward cooling a tariff war that has disrupted the global economy.
China has full confidence in its ability to manage US trade issues, its Vice Foreign Minister Hua Chunying said, a day before the trade talks begin.
On Thursday, US President Donald Trump said he expects substantive negotiations between the world's two largest economies, signalling that the punitive 145% US tariffs on Chinese goods may come down.
'Tariff de-escalation, if it materializes, would serve as a major positive for Chinese equities. However, we think the negotiation process could be lengthy, with ups and downs,' Morgan Stanley analysts, including Laura Wang, said.
'We advise a balanced portfolio with high-quality, large-cap offshore internet names and A-share blue-chip consumer names.'
China's leading chipmaker, Hua Hong Semiconductor , dragged on the market, tumbling nearly 10% after reporting a drop in earnings in the last quarter.
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