HONG KONG: China and Hong Kong stocks fell broadly on Friday as investor sentiment cooled due to concerns that new US tariffs could shake the global economy.
At the close, the Shanghai Composite index was down 0.67% at 3,351.31, ending the week flat.
The blue-chip CSI300 index was down 0.44%, with its financial sector sub-index lower by 0.23% and the consumer staples sector falling 0.49%. Real estate index declined 0.34% and the healthcare sub-index lost 0.43%.
Semiconductor and energy stocks dropped 2.4% and 1.5%, respectively, to lead the declines.
In Hong Kong, the Hang Seng index was down 152.20 points or 0.65% at 23,426.60. It has declined 1.1% this week, marking a third straight weekly fall.
Hong Kong-listed tech giants lost 1.5%.
Investors are still gauging the 25% tariff on auto imports announced by US President Donald Trump and its impact on major exporting economies.
Trump also plans to implement new reciprocal tariffs on several trading partners from April 2.
China’s President Xi Jinping urged a gathering of global CEOs on Friday to protect industrial and supply chains, as Beijing seeks to assuage foreign firms’ concerns over its economy in the face of tariff risks.
Sentiment towards mainland Chinese stocks dropped with lower trading volumes, Morgan Stanley analysts, led by Laura Wang, said in a note on Friday.
“We expect higher volatility amid tariff uncertainty but believe green shoots on earnings and liquidity warrant further index upside towards year-end,” they said.
The smaller Shenzhen index ended down 0.9% and the start-up board ChiNext Composite index was weaker by 0.79%.
Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.6%, while Japan’s Nikkei index closed down 1.8%.
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