Hong Kong stocks fell for a second day, led by electric-car makers, on concerns Donald Trump’s return to the White House will heighten trade tensions, following his election pledges to raise tariffs on Chinese exports. Losses were limited on hopes China will frontload its stimulus to counter the impact.
The Hang Seng Index dropped 0.3 per cent to 20,485.46 at 9.41am local time, adding to the slump of 2.2 per cent on Wednesday. The Tech Index slipped 0.7 per cent. The CSI 300 Index fell 0.4 per cent, while the Shanghai Composite Index was little changed. The Nasdaq Golden Dragon Index, which tracks US-listed Chinese stocks, slid 1.8 per cent overnight in reaction to Trump’s win.
Electric vehicle (EV) maker Geely Auto tumbled 4.4 per cent to HK$13.90 and peer BYD retreated 2.5 per cent to HK$275.80. Smartphone maker Xiaomi, which also ventured into EV manufacturing, slipped 1.8 per cent to HK$27.10. Tech sector leaders Alibaba Group declined 0.6 per cent to HK$93.80 and peer JD.com lost 1.3 per cent to HK$150.
Trump beat Democrat Kamala Harris to start his second presidential term, having pledged to impose as high as 60 per cent tariffs on Chinese goods. Analysts said he could further restrict US investments in Chinese industries to protect US manufacturing interest.
Trump’s victory “raises the probability of very large tariffs on Chinese exports to the US and challenges the outlook for Chinese stocks,” UBS Global Wealth Management said in a report. Markets will be watching if Beijing will boost and front load fiscal spending in response, it added.
The standing committee of the National People’s Congress, China’s top legislative body, will conclude its meeting on Friday, with most economists expecting a big fiscal spending plan to offset Trump’s hawkish agenda towards China.
Elsewhere, most Asian markets traded lower. Japan’s Nikkei 225 retreated 0.4 per cent, while South Korea’s Kospi dropped 0.3 per cent and Australia’s S&P/ASX 200 fell 0.4 per cent.
