FX.co ★ Hong Kong Stocks Slip to Close at 1-Month Low

On Thursday, the Hang Seng index fell by 353 points, or 1.5%, concluding at a one-month low of 22,850. The decline was driven by widespread losses across various sectors. Heightened trade tensions with the United States contributed to the downturn, as China pledged decisive retaliation against unexpectedly large tariffs imposed by the Trump administration. The U.S. announced an additional 34% levy on Chinese imports, following a previous 20% tariff earlier this year. Simultaneously, U.S. futures experienced a significant drop, driven by concerns that escalating trade disputes might hinder central banks’ strategies to reduce interest rates. The technology sector led the market decline, with stocks dropping approximately 2%, followed by the consumer and financial sectors. However, there was some optimism due to expectations that China might implement further stimulus measures to boost consumption and mitigate the effects of tariffs. Notably, Chinese e-commerce stocks listed in Hong Kong, such as Alibaba and JD.com, faced significant declines of 5.1% and 5.0%, respectively. Other major decliners included Shenzhou International, which fell by 13.7%, Techtronic Industries, down 12.6%, and BYD Electronic International, which decreased by 8.7%.