Hang Seng falls 44 points on trade and Fed concerns

The Hang Seng Index declined 44 points, or 0.2%, to close at 21,814 on Thursday, reversing early gains as global trade uncertainty dampened investor sentiment.

Hang Seng falls 44 points on trade and Fed concerns

Reports that India is considering a temporary 15% to 25% tax on Chinese steel within six months to protect its domestic industry added to trade tensions. Meanwhile, in the U.S., President Trump is expected to impose reciprocal tariffs as early as Wednesday evening on countries that tax U.S. imports. The market retreated from a four-month high the previous day as stronger-than-expected U.S. inflation fueled concerns that the Federal Reserve may have limited room to cut interest rates this year. Additionally, uncertainty persisted around potential Ukraine-Russia peace talks despite Trump’s recent discussions with both leaders.

Tech falls, Alibaba rises on AI deal

The sell-off was led by property (-1.4%) and tech (-1.3%) stocks, with consumer-related shares also declining. BYD Electronic plunged 8.0%, followed by Xiaomi Corp. (-6.0%), Lenovo (-5.5%), and Semiconductor Manufacturing (-3.9%). On the other hand, Hong Kong-listed Alibaba surged 2.6% after CEO Joe Tsai confirmed an AI partnership with Apple, providing a rare bright spot in an otherwise weak session.