Hong Kong Stock Market Under Pressure at Open, US Tariff Sentiment Looms
The Hong Kong stock market opened sharply lower at the start of trading on Monday, amid growing investor concerns about the potential escalation of the global trade war. The pressure came after US President Donald Trump announced plans to impose new tariffs on several European countries, which immediately triggered a sell-off across Asia.
The benchmark Hang Seng Index opened down 203 points, or around 0.75%, to 26,641. The decline was broad-based, with the Hang Seng China Enterprises Index also falling 0.75%, while the Hang Seng Tech Index fell further by 0.77%. This reflected the growing risk-off sentiment among market participants, who feared that aggressive US trade policies could further disrupt global economic stability.
The technology sector was among the hardest hit at the start of the session. Alibaba Group shares recorded the steepest decline, falling around 2.5%. Pressure was also seen on Meituan and Xiaomi, which each fell 1.2%. Meanwhile, Tencent Holdings and JD.com also moved in the red, albeit with relatively more limited declines.
The financial sector also faced pressure. Large-cap stocks like HSBC Holdings fell around 1.1%, while AIA Group weakened 0.9%, reflecting the overall negative market sentiment.
Amid the market downturn, gold mining stocks stole the spotlight with significant gains. This surge was in line with global gold prices hitting new record highs, driven by increased demand for safe haven assets amid geopolitical and trade uncertainty. Shandong Gold Mining led the sector's gains with a gain of around 2.5%, followed by Zhaojin Mining, which rose 2%.
Going forward, market participants are expected to remain cautious while closely monitoring developments regarding US tariff policies and the responses of trading partners, which could potentially determine the direction of Asian market movements in the near term.
Source: Newsmaker.id
