The Hang Seng Index dropped by 138 points, or 0.6%, to close at 23,463 on Thursday, extending its losses for a second consecutive session amid broad-based declines across sectors.
Hang Seng down by 0.6% at finish
Sentiment was further dampened as the Trump administration escalated trade barriers, which prompted retaliatory measures from the European Union and Canada. China also vowed to take "all necessary measures" to safeguard its interests, adding to the market's uncertainty. These geopolitical tensions have weighed heavily on investor confidence, particularly in the context of ongoing trade disruptions.
On the corporate front, Budweiser APAC announced additional job cuts, mainly in China, as part of its broader cost-reduction strategy. While the decision raised concerns about the impact of cost-cutting measures, it also contributed to the overall sense of economic caution in the region.
In contrast, U.S. Consumer Price Index (CPI) data for February came in below expectations, which provided some relief to markets and strengthened the case for potential Federal Reserve rate cuts in the future. This development, however, wasn’t enough to lift sentiment across Asian markets, as the broader outlook remained clouded by global trade and economic uncertainties.
Worst and best performers
The tech sector suffered a notable 1.7% decline, with major stocks like Semiconductor Manufacturing (-4.9%), Meituan (-2.2%), and Alibaba (-2.5%) all posting losses. The consumer and property sectors also took a hit, driven by mounting doubts over China's ability to meet its 5% GDP growth target for 2025—unchanged from 2024—amid deflationary pressures and persistent trade uncertainties. The combination of these factors raised concerns about China's economic trajectory in the near term.
Among the worst performers were companies such as Tongcheng Travel (-8.0%), Cathay Pacific Airways (-5.3%), Horizon Robotics (-5.2%), Prada Spa (-3.5%), and Anta Sports (-3.4%). These stocks were particularly hard-hit, reflecting broader market unease and the challenging outlook for both global and regional growth amid mounting geopolitical risks and economic slowdown concerns.
