Headline indices of the Hong Kong share market stumbled on Monday, 10 September 2018, on following negative cues from Wall Street Friday and concerns lingering over trade issues after Trump threatened tariffs on a further $267 billion worth of Chinese imports, on top of earlier promises to levy duties on $200 billion worth of Chinese goods. In afternoon trade, the Hang Seng Index dropped 239.61 points or 0.9% to 26,733.86. The Hang Seng China Enterprises Index fell 93.93 points or 0.9% to 10,465.61. The sub-index of the Hang Seng tracking the Commerce & Industry sector fell 0.6%, the financial sector was 1.2% lower, and properties sector fell 0.8%, and Utilities sector dropped 0.4%.
US President Donald Trump on Friday signalled his intention to impose tariffs on additional $267 billion, in addition to the proposed 25% duty to be levied on $200 billion of Chinese goods. The US has already imposed additional tariffs of 25% on $50 billion of Chinese goods on 23 August under Section 301 on grounds of alleged theft of American intellectual property rights and forced transfer of technology from US companies by China. With additional tariffs on the proposed $200 billion Chinese goods, the total IPR (intellectual property rights)-related tariffs on Chinese goods will go up to $250 billion.
The US administration is currently struggling to finalize the list of Chinese goods of $200 billion that would be subjected with additional tariffs because of opposition from American businesses. Many US companies making bicycles to laptops and mobile phones, including Apple Inc., are seeking exemptions from the proposed tariffs on $200 billion Chinese goods, while cautioning that the tariffs will adversely hit America's economic interests.
Adding to the tensions, data out Friday showed China's trade surplus with the United States widened to a record in August, an outcome that could further inflame Sino-U.
S. trade tensions. Trump, who is challenging China, Mexico, Canada and the European Union on trade issues, has now expressed displeasure about his country's large trade deficit with Japan.He said on Friday trade discussions with Japan has begun and added that India has also asked to start talks on a trade deal.
Also weighing on global shares was the prospect of faster rate rises by the Federal Reserve after data on Friday showed U. S. jobs growth accelerated in August and wages notched their largest annual increase in more than nine years.
OFFSHORE MARKET NEWS, US stock market closed down on Friday, after Trump threatened tariffs on a further $267 billion worth of Chinese imports, on top of earlier promises to levy duties on $200 billion worth of Chinese goods. The Dow Jones Industrial Average fell 79.33 points or 0.3% to 25,916.54, the Nasdaq dipped 20.18 points or 0.3% to 7,902.54 and the S&P 500 slipped 6.37 points or 0.2% to 2,871.68.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)