Chinese and most Asian stock markets slip as the global trade outlook remains in flux

Shanghai's stock market couldn't quite escape the whiplash in the US tariff saga that hit markets around the world this week, despite some positive earnings reports.

News that a US court ruled Trump administration tariffs unconstitutional initially buoyed investors, but the gloss disappeared after an appeals court imposed a temporary injunction on the ruling.

Chinese tech firm Xiaomi, which produces smartphones and then ventures into electric cars and chips, beat analysts' forecasts with positive first-quarter results. Xiaomi's shares traded in Hong Kong, which rose after the earnings were reported, ended the week down 3.8 percent.

A victim of the tariff war, Chinese e-commerce giant PDD holdings saw its share price tumble after reporting a 47 percent drop in first-quarter net. The company's earnings were hurt by subsidiary Shein, whose model of duty-free delivery to overseas buyers has been hit by new postal levies from the US and Europe.

"With trade disputes still afoot, investors need to consider how to better manage their portfolios for the second half," said Liang Xing, an analyst with Guotai Fund. "Some investors may continue to invest heavily in tech shares, but others may move to other categories, like precious metals and military equipment."

For the week, the Shanghai Composite Index edged down 0.03 percent, and the Shenzhen Component Index lost 0.91 percent. Hong Kong's Hang Seng dived 1.32 percent.

Japan's Nikkei managed to close the week up 2.2 percent after the government released a package of economic stimulus measures, despite a 1.2 percent decline on Friday.

In New York, where investors seem to take constant trade gyrations more in their stride, the S&P 500 was up 1.9 this week, while the Dow Jones average put on 1.6 percent. The tech-heavy Nasdaq rose 2 percent.

On Friday, Shanghai announced that the annual Lujiazui Forum, a high-profile gathering of policymakers, financial experts and business leaders, will be held on June 18-19 in the city. Against a backdrop of trade tensions, the theme of the forum is "Financial Opening-Up, Cooperation and High-Quality Development in a Changing Global Economy."

At the JP Morgan Global China Summit in Shanghai a week ago, Kwang Kam Shing, Hong Kong head of operations in North Asia, told the South China Morning Post that global investors are taking an increasing interest in China to diversify their investment portfolios.

China's markets will be closed on Monday for the annual Dragon Boat Festival.