Asia markets down

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Hong Kong Asia markets were mostly down Monday, with investors cautious ahead of US-China talks in Shanghai this week and amid more civil unrest in Hong Kong.Two-day discussions begin on Tuesday with a Washington delegation led by White House Trade Representative Robert Lighthizer.But analysts are pessimistic about a resolution to the year-long trade dispute between the world’s top two economies that has seen $360 billion in tariffs imposed on bilateral trade.
“Hoping for the best but preparing for the worst best describes my view,” said Vanguard Markets managing partner Stephen Innes. “We are not overly optimistic about a positive Shanghai surprise.”
Hong Kong was among the biggest downward movers on Tuesday with the Hang Seng falling more than two percent after a fresh round of violent protests over the weekend, before paring losses to close one percent lower.
Pro-democracy demonstrators in the financial hub fought a second consecutive day of running battles with police on Sunday evening in a well-heeled residential district, a day after clashes at a banned rally in a town near the border with mainland China.
Real estate shares were among the biggest losers from the political uncertainty, with commercial property developer Swire down three percent and subway operator MTR down 3.4 percent at the close.
The weekend protests were “factoring quite negatively into the overall risk equation”, Innes said, with traders concerned that Washington may speak in support of the demonstrators.—Agencies