Hong Kong stocks end down amid trade, economic woes

• The Hang Seng index fell 0.1pc, to 26,503.93, while the China Enterprises Index lost 0.1pc, to 10,500.17 points.
• China's factory gate prices declined at their fastest pace in more than three years in September.

Hong Kong stocks slipped on Tuesday amid worries over China's economic health and uncertainties around Sino-U.S. trade talks, but losses were limited as the city's central bank cut banks' capital buffer to support the economy.

The Hang Seng index fell 0.1pc, to 26,503.93, while the China Enterprises Index lost 0.1pc, to 10,500.17 points.

The Hong Kong Monetary Authority (HKMA) has cut the amount of cash that banks must keep as reserves, releasing an extra HK$200-300 billion ($25.50-38.24 billion) into the broader economy, which has been hit by months-long protests and the Sino-U.S. trade war.

China's factory gate prices declined at their fastest pace in more than three years in September, reinforcing the case for Beijing to unveil further stimulus as manufacturing cools on weak demand and U.S. trade pressures.

Doubts remained as to whether China and the United States could come to a durable deal to end their more than one-year-long trade war.

U.S. Treasury Secretary Steven Mnuchin said on Monday that an additional round of tariffs on Chinese imports would likely be imposed if a trade deal with China had not been reached by then, but added that he expected the agreement to go through.

Around the region, MSCI's Asia ex-Japan stock index  was firmer by 0.04pc, while Japan's Nikkei index  closed up 1.87pc.

The yuan was quoted at 7.0756 per U.S. dollar at 08:14 GMT, 0.12pc weaker than the previous close of 7.067.

At close, China's A-shares were trading at a premium of 29.92pc over Hong Kong-listed H-shares.