Hong Kong stocks return to 24,000 points amid Trump's new tariff wave

Hong Kong's and mainland China's equities rose in the morning after the United States announced levies of 25-40 percent on goods from 14 countries from August 1, without mentioning China.

Chetan Ahya, chief Asia economist at Morgan Stanley, noted that China negotiations and the transhipment issue suggest that uncertainty will likely persist, weighing on corporate confidence, capital expenditure and the trade cycle.

If new tariff rates come into effect, the weighted average tariffs for Asia will rise to 27 percent, said Morgan Stanley.

The benchmark Hang Seng Index stood at 24,073 by midday, 185 points or 0.78 percent higher than the previous close.

The half-day main board turnover increased 7.3 percent to HK$117 billion. 

The Hang Seng Tech Index climbed further by 1.3 percent to 5,297 and the Hang Seng China Enterprises Index advanced by 0.84 percent to 8,681.

In mainland China, the Shanghai Composite Index increased 0.58 percent to 3,493 by noon. The Shenzhen Component Index jumped 1.27 percent to 10,568 as of midday.

STAFF REPORTER