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Hong Kong stocks slide to 6-week low on Trump tariffs as exporters tumble

Companies with the biggest overseas sales lead decliners among Hong Kong stocks

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Pedestrians cross the road in Central. Photo: Elson Li
Zhang Shidongin Shanghai
Hong Kong stocks fell to a six-week low after the US moved to impose a 34 per cent reciprocal tariff on China and a levy of at least 10 per cent on almost all of its trading partners, escalating a global trade war that could dent the global growth outlook and stoke inflation.

On Thursday, the Hang Seng Index dropped 1.5 per cent to 22,849.81 at the close, a level not seen since February 20, while the Hang Seng Tech Index slumped 2.1 per cent. On the mainland, the CSI 300 Index slipped 0.6 per cent and the Shanghai Composite Index retreated 0.2 per cent.

For the week, the Hang Seng Index was down 2.5 per cent to cap a fourth straight losing week. Financial markets in the city and on the mainland will be closed on Friday for a public holiday.

Companies with the biggest overseas sales led decliners. Techtronic Industries, the Hong Kong-based machine tool maker that generated 76 per cent of its sales from North America last year, plunged 12 per cent to HK$82.20. Shenzhou International Group Holdings, a Chinese apparel company and Nike supplier, tumbled 14 per cent to HK$53.10 and PC maker Lenovo Group slumped 7.8 per cent to HK$9.83. The benchmark’s heaviest hitters also took a drubbing, with Alibaba Group Holding retreating 5 per cent to HK$123.50 and Tencent Holdings sliding 1.2 per cent to HK$497.80. Alibaba owns the Post.

Global traders shifted to haven assets after US President Donald Trump unveiled tariff rates on what he called “Liberation Day,” with gold prices reaching a record high again and the yield on US Treasuries slipping. S&P 500 and Nasdaq 100 Index futures slumped at least 3 per cent during Asian trading hours.

Japan’s Nikkei 225 slid 2.7 per cent on concerns that a sharp appreciation in the yen will weigh on exports; South Korea’s Kospi retreated 0.8 per cent and Australia’s S&P/ASX 200 lost 0.9 per cent.

“The scale of these tariffs raises concerns about growth risks,” said Tai Hui, a strategist at JPMorgan Asset Management in Hong Kong. “This policy announcement is likely to dampen risk sentiment in the short term. Risk assets, including US and Asian equities, may face pressure. The fear of weaker growth currently outweighs inflation concerns, potentially driving safe-haven flows into government bonds.”

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