(Hong Kong) The escalation of the trade war has reached new heights as U.S. President Trump announced last Wednesday the imposition of "reciprocal tariffs" on all trading partners. In response, China declared countermeasures last Friday, imposing a 34% tariff on all goods from the United States.
The global stock markets have been reeling since last Thursday, with a significant downturn witnessed this morning in the Asia-Pacific region. The Japanese stock market plummeted by around 3,000 points, breaching the 31,000 point mark. Investors are seeking refuge in the bond market, leading to a drop in the yield of the U.S. 10-year Treasury bonds to 3.9 basis points. Gold and oil prices, however, have experienced declines, with spot gold falling below $3,000 and New York crude oil dipping below $60.
At 10.46am, the Hang Seng Index was trading at 20,750.21, marking a substantial decrease of 2,099.60 points (9.19%) today.
The mainland Chinese stock market also experienced a downturn, with the Shanghai Composite Index dropping by 5.7% or 191 points to 3,150 points.
HSBC (0005) maintained a decrease of over 10%, with its latest trading price at 74.9 Hong Kong dollars, reflecting a 13% decline.
In the Asia-Pacific region, a stock market crash occurred, with the Nikkei Index falling by 2,078 points to 31,702 points. The Taiwan Weighted Index dropped by 2,050 points, now at 19,248 points.
In the wake of the trade war intensification, the Hang Seng Index opened 2,119 points lower at 20,730 points before plummeting by 2,336 points or 10.2% to reach 20,513 points. The state-owned enterprise index dropped by 848 points or 10.09% to 7,570 points, while the technology index fell by 636 points or 11.98% to 4,676 points. Technology stocks faced heavy selling pressure, with Tencent dropping by 9.3%, Alibaba by 12.3%, Meituan by 10.2%, Xiaomi Group by 10.3%, JD Group by 11.7%, and Kuaishou by 14.4%. The financial sector also experienced a broad decline, with HSBC Holdings falling by 14.8%, AIA Group by 8.1%, Ping An Insurance by 10.6%, and Hong Kong Exchanges and Clearing by 11.7%.
Source: Dimsumdaily.hk
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