Tariffs Tumble: China and Hong Kong Markets Plunge Amid Escalating Tensions

China and Hong Kong shares ended weeks of gains with a sharp decline due to new U.S. tariffs on Chinese imports imposed by President Trump. The geopolitical tensions affected tech stocks significantly. Investors are now focusing on upcoming policy announcements at China's National People's Congress meeting.

China and Hong Kong equities experienced a downturn after consecutive weeks of gains, spurred by fresh U.S. tariffs announced by President Donald Trump. Investors began booking profits on technology stocks and shifted their attention to the forthcoming annual parliamentary session.

Hong Kong's Hang Seng Index saw its steepest drop since October 2024, plummeting over 3%. In tandem, Chinese blue-chip and Shanghai indices both dropped around 2% as geopolitical tensions intensified with the U.S. imposing an additional 10% duty on Chinese goods.

Despite a six-week climb, the Hang Seng Index and CSI 300 Index fell by 2.3% and 2.2% respectively. Analysts anticipate that technology launches, such as Xiaomi's and Tencent's, might catalyze further profit-taking, redirecting market focus to economic policies ahead of the National People's Congress.

(With inputs from agencies.)