Hong Kong Markets Rattle as US Tariff Turmoil Sparks Sell-Off Across Asia

Asian stock markets, led by Hong Kong, plunged on Friday as investor anxiety deepened over escalating US-China trade tensions and growing fears of a global recession. The renewed volatility came after the White House confirmed a dramatic increase in tariffs on Chinese imports—raising duties to a staggering 145%.

The announcement, which also included hints from Treasury Secretary Scott Bessent that delisting Chinese firms from US exchanges is “on the table,” sent shockwaves through financial markets overnight. US stocks, bonds, and the dollar all weakened, while gold soared to new highs as traders rushed to safe havens.

Hong Kong’s Hang Seng Index fell 0.4% to 20,589.82 in early trading, extending its weekly drop to nearly 10%—its worst performance in months. The Hang Seng Tech Index dipped 0.1%, while China’s mainland CSI 300 slid 0.6%, and the Shanghai Composite Index lost 0.2%.

The mounting trade uncertainty, combined with recession warnings from major banks, has intensified pressure on regional equities. Analysts warn that unless US-China relations stabilize, markets could remain volatile for the foreseeable future.