The Hang Seng closed almost flat at 23,202 on Wednesday, following modest gains in the prior session, as strength in tech and financials was offset by weakness in property and consumer-related stocks.
Hang Seng muted at finish
Investors remained cautious ahead of President Trump's announcement on new reciprocal tariffs later today, which the White House said would take effect immediately. Additionally, a separate 25% tariff on auto imports is scheduled to be enforced starting April 3, raising concerns about potential retaliatory measures from China.
Geopolitical tensions also weighed on sentiment, as China conducted a second consecutive day of military drills around Taiwan, adding to market jitters. Meanwhile, despite upbeat manufacturing data for March in China, worries persisted that further trade barriers could put pressure on the sector in the coming months.
Xiaomi drops to a six-week low
In corporate news, Xiaomi Corp. tumbled 4.3% to a six-week low amid concerns over a fatal EV crash, while XPeng edged down 0.2% despite reporting an impressive 268% year-on-year surge in March sales, delivering 33,205 units. Other EV-related stocks saw mixed performances, reflecting investor uncertainty over the sector.
On the upside, Zhejiang Leapmotor jumped 12.1%, continuing its strong rally, while Chow Tai Fook Jewellery surged 9.6% on robust earnings expectations. Financial stocks broadly provided some support to the index, helping offset losses in the property sector, which remained under pressure amid ongoing concerns about liquidity issues and regulatory risks.
