Hang Seng Index sidesteps bear trap as Trump’s tariff kick-off mauls Asia-Pacific markets
Hong Kong stocks rebound; other Asia-Pacific markets fall as US tariffs on China and other trading partners take effect
The Hang Seng Index rose 0.7 per cent to 20,264.49 at the close, bouncing back from a decline of as much as 4.3 per cent that dragged the benchmark to its lowest level since January 23. At one point on Wednesday, it fell 20 per cent from a high reached on March 19, a decline that would be seen by some traders as falling into a bear market.
The Hang Seng Tech Index jumped 2.6 per cent. On the mainland, the CSI 300 Index, which tracks the 300 largest stocks in Shanghai and Shenzhen, added 1 per cent, while the Shanghai Composite Index advanced 1.3 per cent.
Stocks revered course shortly after the sell-offs spurred by the headline that an additional 50 per cent tariff imposed by Trump on Chinese imports took effect at noon Hong Kong time on Wednesday, pushing the total levy on many goods from China to 104 per cent. Expectations quickly swirled that the national team, dubbed state buyers, would ratchet up efforts to shore up equities.
07:26
Stock markets in Asia resume slump as hefty US tariffs on China take effect
“Top officials will direct more capital from the state-controlled institutions to stabilise the stock market if panic selling occurs,” said Ivan Li, a fund manager at Loyal Wealth Management in Shanghai.
The gains in Hong Kong and Chinese stocks bucked the weakness on other key markets in the Asia-Pacific region, where fears of a global recession gripped sentiment to send five key benchmarks into the bear market.