SHANGHAI: China and Hong Kong stocks ended roughly flat on Wednesday, as markets awaited further directions from US President Donald Trump’s new reciprocal tariffs on global trading partners.
China’s blue-chip CSI 300 Index ended lower by 0.1% and the Shanghai Composite Index rose 0.1%, while the Hong Kong benchmark Hang Seng was unchanged. The White House confirmed on Tuesday that Trump will impose new tariffs on April 2, though it provided no details about the size and scope of trade barriers that have investors fretting about an intensifying global trade war. An announcement is scheduled on Wednesday for 4 p.m. EDT (2000 GMT). Since taking office in January, Trump has already levied 20% tariffs on Chinese imports. In March, China had retaliated against some US tariffs.
“Much will hinge on Trump’s tone – whether he signals openness to negotiations or doubles down on more confrontation,” said Philip Wee, senior FX strategist at DBS. “Risk aversion will take hold if the US tariffs are broad and aggressive, with a second wave of volatility expected should China and the EU respond swiftly with retaliatory measures,” he said.
Financial shares, up 0.7%, led gains in China, while tech majors traded in Hong Kong rose 0.4%.
Comments
Comments are closed for this article.