Hang Seng Slips, Major Stocks Tumble Amid Storm of Uncertainty
Hong Kong's Hang Seng Index fell 154 points, or 0.6%, to 23,916 on Friday (4/7), recording a second straight day of declines. What caused it? Investors are turning cautious ahead of the July 9 deadline for reciprocal tariffs to be imposed by US President Donald Trump. So far this week, the index has fallen 1.5%, reversing the previous week's gains.
When will additional pressure emerge? Pressure comes after China's Ministry of Commerce announced the results of an investigation into brandy imports from the European Union. The result: China will impose tariffs of up to 34.9% for five years starting July 5. On the other hand, investors are also looking forward to the release of China's key inflation data CPI and PPI for June due next week, as deflation risks continue to loom over the country's economy.
Although US markets are closed for the Independence Day holiday, sentiment remains mixed. Good news came from potential economic stimulus at the upcoming Chinese Politburo meeting and the US plan to ease restrictions on exports of chip design software to China. However, several blue chips such as AIA Group (-4.6%), Techtronic Industries (-2.9%), and China Overseas Land (-2.3%) posted sharp declines, further weighing on the index.
Source: (ayu-newsmaker)
