Hong Kong leader Tung Chee-hwa yesterday looked set to resign, cutting short a turbulent eight-year tenure overshadowed by economic recession, policy gaffes and unease over China's interference.

Local newspapers splashed Tung's resignation across their front pages, but the governments in both Beijing and Hong Kong refused to confirm or deny whether the territory's first post-colonial leader was stepping aside.

Reports said Tung, handpicked by Beijing to be Hong Kong chief executive in 1997, handed in his resignation last month citing poor health. The Standard newspaper said it had been accepted by the Communist Party's ruling politburo.