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Hong Kong Hang Seng gains on bargain hunting

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Headline indices of the Hong Kong share market closed higher on Thursday, 12 July 2018, as investors chased for bottom fishing a day after a bruising selloff amid fears of an escalation in the U. S.-trade war after the said it would impose tariffs on an extra 200 billion worth of Chinese imports and said it would retaliate. At the close of trade, the added 205.92 points or 0.73% to 28,517.61. The Enterprises Index rose 111.07 points or 1.04% to 10,769.33.

The Chinese and U. S. officials have raised the prospect of resuming talks over trade between the two nations after ratcheted up the pressure by announcing a huge new round of potential tariffs. and now have about seven weeks to strike a deal or dig in for a trade war that could upend corporate supply chains and raise prices for consumers around the world.

Local market suffered heavy losses yesterday after the raised the stakes in its trade war with China on Tuesday, saying it would slap 10% tariffs on an extra $200 billion worth of Chinese imports. U. S. officials released a list of thousands of Chinese imports the administration wants to hit with the new tariffs, including hundreds of as well as tobacco, chemicals, coal, and aluminum.

It also includes consumer goods ranging from car tires, furniture, wood products, handbags and suitcases, to dog and cat food, baseball gloves, carpets, doors, bicycles, skis, golf bags, toilet paper and

said it will take firm and forceful measures if the new tariffs are enacted. That response probably would include measures other than tariffs. Trump has threatened to put new taxes on almost everything the imports from China.

The U. S. tariffs on $200 billion of Chinese goods are scheduled to take effect after Aug. 30, when the Trump administration's consultation process ends.

Last week, imposed 25% tariffs on $34 billion of Chinese imports, drawing immediate retaliatory duties from on US imports in the first shots of a heated trade war. US had warned then that his country may ultimately impose tariffs on more than $500 billion worth of Chinese imports.

Shares of Yangtze Optical Fibre, which claims to be the world's largest supplier of optical preform and fibre, surged 8.6 per cent to HK$31.75, after the US and signed an agreement paving the way for China's number two to resume business with its American suppliers. The ban on ZTE, in place for nearly three months, will be removed once the company deposits US$400 million in an escrow account, the said on Wednesday. In response, climbed 23 per cent to HK$13.70. shares have lost about 59 per cent of their value since November.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, July 12 2018. 14:02 IST
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