FX.co ★ Hang Seng Under Pressure as Trump’s Tariffs Escalate Trade Tensions

Equity markets in Hong Kong saw a decline of 268 points, or 1.2%, closing at 22,933 on Thursday. This downturn extended from previous session losses following an announcement by U.S. President Trump regarding higher-than-expected tariffs. This development steered investors away from riskier assets, resulting in the Hang Seng index dropping to a one-month low across various sectors. Notably, technology stocks fell by 1.7% as manufacturing hubs in China and Taiwan were impacted by new tariffs exceeding 30%, culminating in total duties on Chinese imports reaching 54%. Concurrently, U.S. futures experienced a significant drop amidst concerns that a spiking trade conflict might further destabilize the already faltering U.S. economy. Attention now turns to Beijing’s potential response to Trump’s recent actions. Citigroup has warned that these heightened tariffs could diminish China’s economic growth by 2.4 percentage points and reduce export growth by 15.4 percentage points, aggravating worries regarding the nation’s economic prospects. Among the stocks showing early declines were Shenzhou International (-15.8%), Techtronic Industries (-8.6%), Sunny Optical Technology (-7.8%), Hansoh Pharmaceutical (-6.1%), and BYD Electronic International (-5.7%).