On Thursday, the Hang Seng Index dropped 1.6 per cent to 22,826.66 as of 10.04am local time, heading for the lowest close since February 20. The Hang Seng Tech Index slumped 2.1 per cent. On the mainland, the CSI 300 Index slipped 0.3 per cent and the Shanghai Composite Index retreated 0.1 per cent.
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. Futures on the S&P 500 and the Nasdaq 100 Index slumped at least 3 per cent in during Asian trading hours.
Japan’s Nikkei 225 slid almost 3 per cent, while South Korea’s Kospi retreated 1.3 per cent and Australia’s S&P/ASX 200 lost 1.1 per cent.
The 34 per cent reciprocal tariff on Chinese imports came on top of an additional 20 per cent levy that was put in place after Trump was inaugurated this year. The cumulative 54 per cent tariff is close to the 60 per cent that he threatened during his campaign, raising fears of derailing a fragile economic recovery in China where exports were a bright spot last year.
