Hong Kong equities fell for a second session on Thursday, losing more than 1 percent, following a sell-off in the U.S. and Europe on escalating geopolitical tensions.
Global risk appetite faltered amidst increasing geopilitical worries regarding North Korea, resulting in investors piling onto havens such as U.S. Treasuries, gold and the yen.
South Korea warned North Korea that it would face a strong response if it carried through with a threat to attack U.S. island territory Guam.
At 0440 GMT, the benchmark Hang Seng Index fell 1.59 percent or 440 points to 27,315 while China's Shanghai Composite Index was down 0.3 percent.
MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.68 percent, snapping a brief foray into positive territory early in the day and extended losses from Wednesday.
Among the laggards, Tencent Holdings fell 1.5 percent, China Construction Bank dropped 2 percent while Ping An Insurance Group lost 2.2 percent.
In U.S. markets, the Dow dipped 36.64 points or 0.2 percent to 22,048.70, while the S&P eased 0.90 points or 0.1 percent to 2,474.02.
Among the key events looming this week includes, U.K. factory output for June due Thursday. Also New York Fed boss Bill Dudley will speak on the same day.
