UPDATE 2-Hong Kong tensions knock FTSE 100's Asia-exposed stocks

* FTSE 100 down 0.4%, FTSE 250 down 0.9%
* Banks weigh as Hong Kong protests intensify
* Travel firm Thomas Cook slumps nearly 20%
* Tullow Oil jumps on the FTSE 250

(Adds company news items, updates share move, changes analyst
quote)
By Muvija M and Indranil Sarkar
Aug 12 (Reuters) - London's FTSE 100 surrendered early gains
on Monday, with Asia-focused shares particularly badly hit by
worries over protests in Hong Kong, while tour company Thomas
Cook plunged after updating on its recapitalisation plans.
The FTSE 100 index .FTSE ended 0.4% lower, while the
midcap index .FTMC dropped 0.9% as concerns about the health
of the British economy, the world's fifth-largest, lingered
after data on Friday showed a surprise downturn in the last
quarter. CMC Markets analyst David Madden said investors fretted not
only over the disappointing numbers but about what lies ahead as
Brexit looms.
"Many traders / fund managers are on holiday and given it is
a sideways-to-down day, the less liquid areas such as the (FTSE)
250 vs the FTSE 100 will tend to underperform," Raymond James
analyst Chris Bailey pointed out.
Both the UK indexes had earlier jumped about 0.6% on the
back of gains in China, but the FTSE 100's Asia-exposed
financials including HSBC HSBA.L took a turn for the worse
after China said the anti-government protests in Hong Kong had
begun to show "sprouts of terrorism".
"Hong Kong has kind of been under the radar of most traders
but increasingly I feel like this has the potential to spiral
into a bigger market worry," Markets.com analyst Neil Wilson
said.
"Today's moves highlight the risks."
The main index, which was also hurt by U.S. President Donald
Trump's comments last Friday that he was not ready to make a
trade deal with China, is on course for its second monthly fall
this year. It recorded its first monthly fall in May, when
tensions between the world's two biggest economies flared up.
China reacted to another $300 billion tariff threat by
letting its currency fall below a key 7-per-dollar level for the
first time in more than a decade earlier this month.
Rolls-Royce RR.L , which supplies engines to planemaker
Boeing BA.N , also weighed with a 3.6% fall after media reports
that fragments of an engine fell from a Norwegian Boeing 787
Dreamliner near Rome, Italy. (https:// Among smallcaps, Thomas Cook TCG.L , the world's oldest
travel company, tanked nearly 18.3% after saying its existing
shareholders were expected to be "significantly diluted" as part
of its rescue plan. Tullow Oil TLW.L was among a handful of gainers on the
FTSE 250 with a 20% jump after saying it had made a major oil
discovery in Guyana, which raised expectations that it would
move to develop a field in the oil-rich South American country.

Burford Capital BURF.L , whose shares have plummeted under
attack from short-seller Muddy Waters, lost another 11.2% after
saying it had identified evidence consistent with illegal market
manipulation of its shares. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
London's FTSE 100 vs Europe's STOXX 600 as trade war goes on
https://tmsnrt.rs/2N6uCQP
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