China and Hong Kong Stocks Decline Amid Tariff Concerns Ahead of Trump Announcement
China and Hong Kong stocks fell sharply ahead of U.S. President Trump’s tariff announcement, with significant losses in the CSI300 and Hang Seng Index. Analysts express concerns as markets brace for potential reciprocal tariffs, despite earlier gains in the indices. Meanwhile, China’s manufacturing activity has expanded, offering some economic respite amid trade tensions.
On Monday, China and Hong Kong stocks experienced declines, amidst rising fears regarding U.S. President Donald Trump’s forthcoming tariff policy announcement on April 2. The blue-chip CSI300 index and the Shanghai Composite index both fell by 1%, reaching their lowest levels in almost a month.
Particularly, the consumer staples sector suffered a loss of 1.3%, while the artificial intelligence index decreased by 1.9%, contributing significantly to the market downturn. In Hong Kong, the Hang Seng Index dropped 1.73%, the lowest since March 4, while the Hang Seng Tech Index saw a significant fall of over 3%, marking its lowest position in a month and a half.
Key market player Alibaba saw a decrease of 3.6%, and Xiaomi faced a decline of 4.8%. CK Hutchison’s shares fell by 4.7%, likely due to delays in a significant ports deal. Analysts from Citi indicated that China is undergoing “a stress test” with the market anticipating increased tariffs to be announced by Trump on April 2.
In regional markets, MSCI’s Asia ex-Japan stock index decreased by 1.84%, and Japan’s Nikkei index fell by 4.08%. Despite these recent setbacks, the Hang Seng Index has risen nearly 15% this quarter, driven by optimism in artificial intelligence and substantial mainland capital inflows, positioning it as a leading performer among major global markets.
Additionally, China’s manufacturing sector has shown signs of expansion, reaching the fastest growth in a year, supported by rising new orders, providing a degree of relief amidst escalating trade tensions with the U.S.
In conclusion, the declines in China and Hong Kong stocks are attributed to heightened concerns regarding impending U.S. tariffs. While the markets have faced setbacks, there is an underlying optimism due to previous gains in the Hang Seng Index and strong manufacturing growth in China. The markets will closely monitor the outcomes of the upcoming tariff announcement.
Original Source: www.hindustantimes.com
Post Comment