HONG KONG: Chinese stocks fell on Friday as shares of Apple suppliers weakened after a US court reinstated President Donald Trump’s tariffs, while automakers extended losses amid ongoing price war concerns.
China’s blue-chip CSI 300 index closed 0.5% lower and registered its second week of loss. The Shanghai Composite index also dropped 0.5% to 3,347.49 points.
The Hang Seng China Enterprises Index fell 1.5% and Hong Kong’s benchmark Hang Seng Index lost 1.2%. Both the indexes snapped their six-week winning streaks.
“Sentiment dropped further amid lower turnover and lukewarm macro prints,” Laura Wang, Chief China Equity Strategist at Morgan Stanley wrote in a note on Friday.
“No signs of near-term stimulus step-up as the interim tariff truce continues.”
A federal appeals court on Thursday temporarily reinstated the most sweeping of US President Donald Trump’s tariffs, a day after a trade court blocked them, saying the president exceeded his authority.
The CSI Consumer Electronics Thematic Index lost 2%. Apple iPhone assembler Foxconn lost 3.9%, BYD Electronics tumbled 6% and Lens Tech weakened 3.4%.
Auto shares continued their downward trend as price war concerns lingered. Shares of Xpeng, BYD and Nio slipped by 3.3% to 5%.
Cushioning the losses, the CSI Banks Index advanced 0.6% after news that People’s Bank of China (PBOC) Governor Pan Gongsheng will attend the opening ceremony of the Lujiazui Forum in Shanghai next month and announce several major financial policies.