Hong Kong stocks tumble after US tariff announcements

Hong Kong stocks dropped after US President Donald Trump signed an order to increase tariffs on the country, testing investors’ nerves before a crucial political meeting in Beijing this week.

The benchmark Hang Seng Index fell by 105 points, or 0.5 percent, to 22,901 points at noon, after slumping around 460 points at one point in the morning trading session. 

The main board turnover was HK$156.9 billion. 

The Hang Seng Tech Index inched down 0.3 percent to 5,521 points. 

BYD (1211) whose shares fell nearly 7 percent to HK$339.60 was among the biggest decliners, after a bumper share sale, but selling pressure hit almost every sector.

Trump signed a fresh order to raise the tariff on China to 20 percent from 10 percent, according to a post on X from the White House’s Rapid Response account. 

Investors are now bracing for a Chinese response -- the nation said it would adopt countermeasures to defend itself against US tariffs, raising the risk of a period of tit-for-tat trade moves.

The A-share market remained dull with the Shanghai Stock Exchange Composite Index down by 0.26 points to 3,316.67 points and the Shenzhen Stock Exchange Composite Index up by 0.17 percent to  2,035.36 points at midday closing.

BLOOMBERG AND STAFF REPORTER