Hong Kong Market extends fall on trade war worries

Hong Kong share market were mixed on Friday, 07 September 2018, on following falls in U.S. and other overseas equities overnight on fears that President Trump could announce tariffs on $200 billion in Chinese imports as early as Friday after a public comment period on the administration's plan ended. Risk sentiments were also hurt by mounting concerns about contagion from a handful of struggling emerging economies. Around afternoon trade, the Hang Seng Index dropped 230.69 points or 0.86% to 26,744.13. The Hang Seng China Enterprises Index fell 57.84 points or 0.56% to 10,520.74. The sub-index of the Hang Seng tracking the Commerce & Industry sector fell 0.7%, the financial sector was 1.1% lower, and properties sector fell 1%, while Utilities sector added 0.3%.

Turmoil in Argentina and Turkey, as their currencies continue to sink on deteriorating confidence, is dragging on the global market as investors fear a spillover effect on other healthier emerging markets and beyond.

 

On the trade front, the U.S. and Canada continued high-stakes negotiations in the effort to revamp the North American Free Trade Agreement, which President Donald Trump said he is prepared to move forward with even without Canada's participation.

Investors were also fretted about a possible escalation in the U.S.-China trade war later in the day, with President Donald Trump reportedly saying over the weekend that he is ready to impose tariffs on an additional $200 billion worth of Chinese imports as soon as the public comment period ends on Thursday.

OFFSHORE MARKET NEWS, US stock market closed softer on Wednesday, amid ongoing trade tensions between the U.S. and its key partners. The Dow Jones Industrial Average inched up 22.51 points or 0.1% to 25,974.99, while the Nasdaq tumbled 96.07 points or 1.2% to 7,995.17 and the S&P 500 fell 8.12 points or 0.3% to 2,888.60.

The major European stock markets ended down on Wednesday. The U.K.'s FTSE 100 Index slumped by 1%, while the German DAX Index and the French CAC 40 Index tumbled by 1.4% and 1.5%, respectively.

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