China shares slip on uncertainty over unlimited rule for Xi

People walk past a bank electronic board showing the Hong Kong share index at Hong Kong Stock Exchange Tuesday, Feb. 27, 2018. A strong finish on Wall Street and early gains by Asian shares bode well for Chinese stocks on Tuesday, although lingering uncertainty over the removal of term limits for China's President Xi Jinping could weigh on investor sentiment. (AP Photo/Vincent Yu)

Chinese stocks slip despite on uncertainty over removal of term limits for President Xi

HONG KONG — Chinese stocks slipped on Tuesday despite gains in other Asian markets and a strong finish on Wall Street, as uncertainty lingered over the removal of term limits for China's President Xi Jinping.

CHINA SCORE: The Shanghai Composite skidded 0.9 percent lower to 3,299.23 while Hong Kong's benchmark Hang Seng Index wavered between gains and losses before rising 0.1 percent to 31,516.73.

REST OF WORLD: Australia's benchmark S&P/ASX 200 rose 0.5 percent to 6,070.20. Japan's Nikkei 225 advanced 1.4 percent to 22,460.85 and South Korea's Kospi gained 0.3 percent to 2,464.35. Major U.S. indexes had a strong finish. The Standard & Poor's 500, Dow Jones industrial average and Nasdaq all rose more than 1 percent.

NO LIMITS: Investors are still mulling the implications of the decision by China's Communist Party to scrap presidential term limits, ensuring party chief Xi Jinping remains head of state indefinitely and setting the stage for him to become the most powerful leader since Mao Zedong. Markets had initially welcomed the news after it was announced Sunday, with some analysts speculating it could make it easier for him to push through economic reforms. But others wondered whether it would mean less incentive to make those changes.

BEIJING DELEGATION: Xi's top economic adviser, Liu He, is traveling to Washington to hold talks with American officials. China's Foreign Ministry gave no details about the six-day trip that begins Tuesday, which comes amid rising tensions over trade, technology and other issues.

MARKET INSIGHT: "The removal of term limits was initially viewed as positive from a political continuity perspective but the market is a forever-discounting mechanism so now investors get concerned about having all the control in one person's hands in perpetuity," said Stephen Innes, head of trading at OANDA.

DATA SCHEDULE: Hong Kong's stock exchange operator is due to release earnings on Wednesday. On the same day, a Chinese industry group is set to issue its latest monthly manufacturing survey.

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