On Thursday, stock markets in China and Hong Kong saw a downturn as investors grappled with the dual prospects of U.S. tariff hikes and anticipated fiscal stimulus measures from Beijing.
By midday, the Shanghai Composite index dipped by 0.1% to 3,364.64, and the blue-chip CSI 300 index decreased by 0.22%. The consumer staples, real estate, and healthcare sectors experienced notable declines. Meanwhile, Hong Kong’s Hang Seng Index also fell by 0.13% reaching 19,680.23.
Economists surveyed by Reuters express concern over potential U.S. tariffs, which could impact China’s growth by 1 percentage point. Despite this, a rise in the automobile sector highlighted efforts to offset economic shocks through incentives. Regional markets, such as MSCI’s Asia ex-Japan index and Japan’s Nikkei index, also showed weakness.
(With inputs from agencies.)
