HK stocks edge down as tariff deadline looms
The Hang Seng Index ended the day down 28.23 points, or 0.12 percent, at 23,887.83. File photo: Reuters
Mainland and Hong Kong stocks edged lower on Monday as anxiety over US trade policy intensified ahead of the July 9 tariff deadline, with upcoming inflation data expected to further test investor nerves.
The benchmark Hang Seng Index ended the day at 23,887.83, down 28.23 points or 0.12 percent.
Mainland stocks closed mixed, with the benchmark Shanghai Composite Index up 0.02 percent at 3,473.13 while the Shenzhen Component Index closed 0.7 percent lower at 10,435.51.
The combined turnover of these two indices stood at 1.21 trillion yuan, down from 1.43 trillion yuan on the previous trading day.
The power and ceramics sectors emerged as the top performers, while biopharmaceutical and brewing stocks faced significant downward pressure.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 1.21 percent to close at 2,130.19.
At market close, China's blue-chip CSI300 Index slipped 0.4 percent, while the Shanghai Composite Index barely changed.
Although China is not at risk of imminent higher tariffs, thanks to the trade truce with the United States, sentiment was still largely subdued as US President Donald Trump's policy swings left investors on edge.
Trump warned on Sunday that he will impose an additional 10 percent tariff on any countries aligning themselves with what he called the "Anti-American policies" of the Brics group of developing nations.
"Markets are set to see more volatility from here" and are unlikely to see a sustained uptrend with the expiring tariff deadline and trade policy uncertainties impacting risk appetite, analysts at Huatai Securities said in a note.
Leading the onshore markets' losses on Monday, the AI sector declined 1.1 percent, the energy sector slid 1.8 percent while the liquor distillers index weakened 0.8 percent.
The medical-services sector weakened 0.7 percent after the Finance Ministry said on Sunday it was restricting government purchases of medical devices from the European Union in retaliation for Brussels' own curbs last month.
Helping offset the losses, Chinese property developers listed in mainland and Hong Kong climbed by 1.4 percent and 0.9 percent, respectively, after the housing regulator vowed to put a floor on dropping home prices.
Traders are also watching for China's key inflation data due out on Wednesday to gauge the health of the world's second-largest economy in the face of persistent deflation pressure and trade risks.(Reuters/Xinhua)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
4 hours ago
- South China Morning Post
Trump announces new tariffs on Philippines, Iraq, Libya, Moldova, Brunei and Algeria
Adapting his 'flood the zone' tactic to foreign trade, US President Donald Trump announced on Wednesday another flurry of take-it-or-leave-it letters imposing tariffs on six smaller economies that have resisted him or are too small to merit individual negotiating attention. Advertisement The latest unilateral actions were 20 per cent tariffs on the Philippines, 25 per cent on Moldova and Brunei, and 30 per cent on Iraq, Algeria and Libya, effective August 1. These, the letters added, are separate from any sectoral tariffs that may be imposed later. The nearly identical letters released on Trump's social media account said 'It is a Great Honor for me to send you this letter' that demonstrates Washington's willingness to continue trading despite America's 'significant trade deficit with your great Country'. 'Our relationship has been, unfortunately, far from reciprocal,' the letters said. 'This deficit is a major threat to our Economy and, indeed, our National Security!' the president added, signing off 'With best wishes'. The build-up follows this week's announcement that his original deadline for reaching '90 deals in 90 days' was postponed until August 1 after very few agreements were secured. Advertisement The new limit, he quickly added, was 'firm, but not 100 per cent firm' if more deals materialised. 'I would say final – but if they call with a different offer, and I like it, then we'll do it', he added.
South China Morning Post
5 hours ago
- South China Morning Post
Will Trump's ‘Big Beautiful Bill' offer opportunities for China?
US President Donald Trump's latest tax and spending act might 'cause some trouble' for China, according to analysts. Advertisement However, they also said Beijing may be able to benefit in certain areas if the act – known officially as the One Big Beautiful Bill – generates further political instability and damages domestic industries such as the US clean energy sector. The act aims to make permanent tax cuts, lock in Trump's priorities on border and defence financing, increase Washington's debt limit by US$5 trillion, slash healthcare funding and jeopardise dozens of planned clean energy projects with ties to China. It has sparked widespread concern across the world over an anticipated surge in US federal deficit – estimated by the Congressional Budget Office to reach at least US$3 trillion over the next decade – and its capacity to reshape global capital flows by sharply reducing incentives for US multinationals to keep profits and investments overseas. The act 'is not aimed at China' but will indirectly affect it and other countries, according to Zhu Junwei, director of Horizon Insights Centre, a Chinese think tank. Advertisement 'Nowadays, when Americans oppose certain domestic policies, they often invoke China – claiming that a certain measure would benefit Beijing and should therefore be rejected. Whether there are exaggerations in such claims requires closer analysis,' she said.
South China Morning Post
5 hours ago
- South China Morning Post
Trump announces new tariffs on six smaller economies
Adapting his 'flood the zone' tactic to foreign trade, US President Donald Trump announced on Wednesday another flurry of take-it-or-leave-it letters imposing tariffs on six smaller economies that have resisted him or are too small to merit individual negotiating attention. Advertisement The latest unilateral actions were 20 per cent tariffs on the Philippines, 25 per cent on Moldova and Brunei, and 30 per cent on Iraq, Algeria and Libya, effective August 1. These, the letters added, are separate from any sectoral tariffs that may be imposed later. The nearly identical letters released on Trump's social media account said 'It is a Great Honor for me to send you this letter' that demonstrates Washington's willingness to continue trading despite America's 'significant trade deficit with your great Country'. 'Our relationship has been, unfortunately, far from reciprocal,' the letters said. 'This deficit is a major threat to our Economy and, indeed, our National Security!', the president added, signing off 'With best wishes'. The build-up follows this week's announcement that his original deadline for reaching '90 deals in 90 days' was postponed until August 1 after very few agreements were secured. The new limit, he quickly added, was 'firm, but not 100 per cent firm' if more deals materialised. 'I would say final – but if they call with a different offer, and I like it, then we'll do it', he added. Advertisement Trump, a self-described 'tariff man', has long believed in the punitive trade tool as an elixir to address trade deficits, supply-chain reform, and manufacturing decline and as a way to return America to an earlier time of economic dominance. He also maintains, in defiance of most economists, that tariffs are paid by foreign governments, not American consumers.
