China and Hong Kong stocks edged up on Wednesday, buoyed by tech shares, as markets awaited U.S. President Donald Trump’s new reciprocal tariffs on global trading partners.
China’s blue-chip CSI 300 Index and the Shanghai Composite Index both rose 0.2% by the lunch break, while Hong Kong benchmark Hang Seng was up 0.1%. ** The White House confirmed on Tuesday that President Trump will impose new tariffs on April 2, though it provided no details about the size and scope of trade barriers that have investors fretting about an intensifying global trade war. An announcement is scheduled on Wednesday for 4 p.m. EDT . ** Since taking office in January, Trump has already levied 20% tariffs on Chinese imports. In March, China had retaliated against some U.S. tariffs.
“Much will hinge on Trump’s tone – whether he signals openness to negotiations or doubles down on more confrontation,” said Philip Wee, senior FX strategist at DBS.
“Risk aversion will take hold if the U.S. tariffs are broad and aggressive, with a second wave of volatility expected should China and the EU respond swiftly with retaliatory measures,” he said.
Financial and artificial intelligence shares rose 0.8% and 0.4%, respectively, leading gains in China, while tech majors traded in Hong Kong rose 0.6%.
The CSI defence index fell 1.6%.
“Hong Kong should be relatively insulated from the impact of Trump’s reciprocal tariff, as the city neither imposes tariffs on U.S. imports, nor maintains a trade surplus with the U.S.,” said Tommy Xie, head of Asia macro research at OCBC.
But “Hong Kong as a regional trading hub and transshipment centre, will still be hurt by tariff-related disruptions,” Xie said. ** Shares of Chinese smartphone-to-electric vehicle maker Xiaomi Corp fell to a six-week low amid concerns over a fatal EV crash.