Shanghai stocks at six-week low

Shanghai stocks on Wednesday hit their lowest close in more than six weeks amid mixed signals over the extent of progress made in the US-China trade talks, while an escalation of violence in Hong Kong rattled sentiment.

The blue-chip CSI300 index closed 0.1% lower at 3,899.98, while the Shanghai Composite Index ended down 0.3% at 2,905.24 points, its lowest close since Sept. 30.

US President Donald Trump said that a trade deal was "close" but gave no new details on when or where an agreement would be signed, disappointing investors in what was billed as a major speech on his administration's economic policies.

Amid increasing pressure on the world's second-largest economy, Chinese Premier Li Keqiang said China should use counter-cyclical adjustment measures more effectively, and will improve the use of local government special bonds and strengthen support for the economy.

Rising political chaos in Hong Kong curbed risk appetite further as anti-government protesters paralysed parts of the Asian financial hub for a third day, Chinese state media condemned the violence, with the China Daily newspaper stating that young protesters were revelling in a "hormone-fuelled rebellion".

Around the region, MSCI's Asia ex-Japan stock index was weaker by 1.08%, while Japan's Nikkei index closed down 0.85%. At 0720 GMT, the yuan was quoted at 7.017 per US dollar, 0.14% weaker than the previous close of 7.0073.

So far this year, the Shanghai stock index is up 16.5% and the CSI300 rose 29.5%, while China's H-share index listed in Hong Kong was up 3.6%. Shanghai stocks dropped 0.81% so far this month.

About 12.98 billion shares were traded on the Shanghai exchange, roughly 86.7% of the market's 30-day moving average of 14.96 billion shares a day. The volume in the previous trading session was 12.97 billion. As of 0721 GMT, China's A-shares were trading at a premium of 29.60% over the Hong Kong-listed H-shares.