Hong Kong Stocks Sink to Almost 2-Week Low as Trump’s Tariffs Stoke Trade-War Fears
Hong Kong stocks slumped to an almost two-week low, taking cues from sell-offs in the US and Asia after US President Donald Trump’s tariff approach stirred fears of a global trade war.
The Hang Seng Index fell 1.7 per cent to 22,614.55 as of 10.02am local time, heading for the lowest close since February 20. The Hang Seng Tech Index dropped 2.6 per cent. On the mainland, the CSI 300 Index slid 0.6 per cent and the Shanghai Composite Index retreated 0.3 per cent.
Electric-vehicle maker BYD plunged 7.1 per cent to HK$338 on a plan to raise as much as HK$40.7 billion (US$5.05 billion) in its biggest-ever share placement. Affiliate BYD Electronic International slid 3.1 per cent to HK$46.75. Alibaba Group Holding retreated 3.1 per cent to HK$126.40, and Tencent Holdings sank 1.2 per cent to HK$477.60.
Trump reaffirmed with reporters that the tariff on Chinese imports would be doubled to 20 per cent, a move he first announced on his social-media account last week. The 25 per cent tariffs on Canada and Mexico would come into effect on Tuesday after the end of a reprieve period.
China will take countermeasures against the US tariffs to protect its own interests, according to a statement by the commerce ministry on Tuesday. Meanwhile, Canada said that it was preparing retaliatory measures.
Two companies started trading. Auto-parts maker Hefei Conver Holding jumped 98 per cent to 47.85 yuan in Shanghai and Jiangsu Changyou Environmental Protection Technology, a maker of advanced materials, soared 243 per cent to 99.15 yuan in Shenzhen.
Other major Asian markets all headed south. Japan’s Nikkei 225 slid 2.1 per cent, while South Korea’s Kospi retreated 0.1 per cent and Australia’s S&P/ASX 200 lost 1 per cent.
Source : SCMP
