Hong Kong Stocks Weaken Ahead of Tariff Deadline
Hong Kong stocks plunged 479 points, or 2.4%, to 19,662 in early trade on Wednesday, reversing strong gains from the previous session. The Hang Seng fell to its lowest level since mid-January as the Trump administration pressed ahead with sweeping tariffs on major trading partners, including a 104% levy on Chinese goods that will take effect today. Meanwhile, Beijing vowed on Tuesday to “fight to the end” to protect its interests, accusing the U.S. of engaging in economic blackmail.
Caution also grew ahead of China’s March CPI and PPI data due later this week, with deflation risks still looming. Helping to cushion further losses was news that Hong Kong may offer relief to companies hit by U.S. tariffs, while Beijing encouraged state-owned and listed firms to shore up investor confidence. All sectors suffered sharp losses, led by technology, consumer and financials. Significant decliners included WH Group (-10.0%), ZTO Express (-7.7%), Innovent Biologics (-7.4%), and Lenovo Group (-6.4%).
Source: Trading Economics