Hong Kong stocks plunged 487 points, or 2.0%, to 23,417 on Tuesday morning, reversing gains from the previous session amid concerns over the risk of a U.S. recession and the threat of Chinese deflation. Meanwhile, S&P Global warned that Beijing's stimulus efforts may not fully offset the impact of new U.S. tariffs amid slowing growth. Separately, U.S. stock futures slumped after Fed's Bostic projected just one interest rate cut this year, citing rising inflation on tariff concerns. To limit further losses, China's government has promised more proactive macro policies this year. Meanwhile, President Trump hinted at potential exemptions from planned reciprocal tariffs for some countries. All sectors fell, with technology, consumer and financials the biggest decliners. Meituan fell 3.4% after earnings slightly missed. Xiaomi tumbled 5.4% after raising $5.5 billion in an enhanced share sale, with Citi warning of near-term dilution. EV stocks also fell, including BYD Electronic (-9.0%), Geely Auto (-4.2%), and Li Auto (-3.8%).(Newsmaker23)

Source: Trading Economics