Hong Kong Equities Tumble Amid New U.S. Tariffs on China

Hong Kong's stock market faced a downturn on Friday, breaking a six-week winning streak, as new U.S. tariffs on Chinese imports were announced. The Hang Seng Index dropped, alongside Chinese shares, due to investor profit-taking in tech stocks amid escalating U.S.-China trade tensions.

Hong Kong equities took a hit on Friday, marking an end to a six-week winning streak. This came after U.S. President Donald Trump announced additional tariffs on Chinese imports, sparking profit-taking in tech stocks by investors.

The benchmark Hang Seng Index fell by 2.3%, with Chinese shares also declining. The blue-chip CSI300 Index dropped 0.8% while the Shanghai Composite Index lost 0.9%. This downturn follows a new 10% tariff announced by Trump, bringing the cumulative tariff on Chinese goods to 20%.

An expert at Nomura, Ting Lu, noted the hawkish stance of Trump's administration, predicting worsening tensions between the U.S. and China as the latter advances in high tech domains. Amidst this backdrop, the Hang Seng Index was poised for a 1.3% decline for the week as tech majors dipped nearly 4% on profit-taking.

(With inputs from agencies.)