Hong Kong stocks near 4-month high as trade war fears grip markets
Hong Kong stocks hovered around a four-month high on Tuesday, as investors weighed the impact of an escalating trade war after the US imposed tariffs on steel and aluminium imports.
The Hang Seng Index fell 0.1 per cent to 21,508.58 as of 10.14am local time. The Hang Seng Tech Index dropped 1 per cent.
On the mainland, the CSI 300 Index dropped 0.4 per cent and the Shanghai Composite Index retreated 0.2 per cent.
Gold producer Zijin Mining Group gained 3 per cent to HK$16.62 after the price of the precious metal rose to a record. Carmakers Geely Automobile Holdings tumbled 7 per cent to HK$16.50, while Li Auto slid 4.4 per cent to HK$100.90 after US President Donald Trump said that his administration was considering levying an import duty on cars.
Investors are treading cautiously following an escalation in the trade war, which has heightened geopolitical risks. Investors see Trump's tariff moves entrenching inflation that could delay interest-rate cuts by the US Federal Reserve. As a result, haven trade has taken hold, with traders flocking to gold.
Elsewhere, major Asian markets were mixed. South Korea's Kospi rose 0.5 per cent, while Australia's S&P/ASX 200 lost 0.2 per cent. Japanese markets are closed for a public holiday.
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