Hong Kong shares fell nearly 1 percent in the morning session Wednesday after US Democrats launched impeachment proceedings against Donald Trump and hopes of a breakthrough in trade talks receded following the president’s tough talk on China.

The Hang Seng Index was down 1 percent, at 26,031 by the break.

On the mainland, the Shanghai Composite Index slipped 0.6 percent to 2,968, and the Shenzhen Composite Index fell 1.2 percent to 1,645.

Asian markets were down worries over international trade after Trump ripped into China at the UN, declaring that the time of Beijing’s “abuses” of the system was “over”.

Tokyo slipped 0.5 percent while Australian stocks were down 0.3 percent.

Oil prices took a hit, with both main contracts down 0.6 percent and in currency trading, the pound slipped against the US dollar in Asia.

The sterling had rallied on Tuesday following Britain’s Supreme Court ruling that Prime Minister Boris Johnson’s suspension of parliament was “unlawful”.

“The ensuing British Pound rally was a bit underwhelming. It probably reflected the uncertainty of both Mr Johnson’s tenure and the Brexit process with October the 31st looming,” said Oanda’s Halley. (AFP)

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Last updated: 2019-09-25 HKT 12:40