China and Hong Kong stocks fell on Tuesday as trade war fears resurfaced after Beijing unveiled retaliatory trade measures against the United States.

At 0404 GMT, the Shanghai Composite index was down 0.93 per cent at 3,133.67, while China’s blue-chip CSI300 index slipped 0.71 per cent to 3,859.49, according to Reuters.

Chinese H-shares listed in Hong Kong dropped 0.05 per cent to 11,992.04, while the Hang Seng Index was down 0.6 per cent at 29,913.68.

The smaller Shenzhen index slid 1.07 per cent and the start-up board ChiNext Composite index was weaker by 1.89 per cent.

China has increased tariffs by up to 25 per cent on 128 US products, from frozen pork and wine to certain fruits and nuts, escalating a dispute between the world’s biggest economies in response to US duties on imports of aluminium and steel.

China’s agriculture-related shares firmed after Beijing hit US goods with tariffs, with pork producers rallying strongly on the mainland.

The Trump administration this week will unveil a list of advanced technology Chinese imports targeted for US tariffs to punish Beijing over technology transfer policies, a move expected to intensify trade tensions between the world’s two largest economies.

Property sectors dropped on the mainland and Hong Kong, as China’s provincial capitals kept up the fight against property speculator.

Banking firms also eased as China’s banking regulator was said to inspect large client loans.

Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.36 per cent while Japan’s Nikkei index was down 0.62 per cent.

The yuan was quoted at 6.2883 per US dollar, 0.12 per cent weaker than the previous close of 6.281.

Source: Punch




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