HSI up 0.86pc at opening

Hong Kong stocks started slightly higher on Tuesday as investors are digesting the US President Donald Trump’s changing tariff policies.

The benchmark Hang Seng Index opened at 21,603, 186 points or 0.86 percent higher than the previous close. 

But the indicator soon turned red to 21,397 as of 9.42 am.

The tech gauge also inched up to 5,057, 0.8 percent from 5,015 on Monday.

Monday afternoon, the White House said it had launched investigations into whether imports of pharmaceuticals and semiconductors threaten national security, which could be a precursor to slapping tariffs on those products.

Meanwhile, the Trump administration's tariff policies are a major shock to the US economy that could lead the Federal Reserve to cut interest rates to head off recession even if inflation remains high, or alternately leave little lasting imprint if they turn out to be a negotiating tool, Fed Governor Christopher Waller said earlier of the day.

STAFF REPORTER