Update | Hong Kong stocks fall for first time in five days on fear of US tariffs on China tech sector
Tech and telecom stocks in Hong Kong and the mainland post heavy losses
Hong Kong’s benchmark stock index closed lower on Wednesday for the first time in five days, with electronics component suppliers posting heavy losses, in response to a report that US President Donald Trump is likely to impose tariffs on up to US$60 billion of Chinese imports in the tech and telecom sectors.
Political concerns also weighed on investors’ sentiment, following the surprise sacking of the US Secretary of State Rex Tillerson.
The Hang Seng Index retreated 0.5 per cent, or 166.44 points, to close at 31,435.01, after booking a 4.7 per cent gain in the previous four sessions.
The Hang Seng China Enterprises Index, or the H-shares index, lost 0.5 per cent to 12,684.52.
Turnover on the main board decreased about 6 per cent to HK$103 billion.
Hang Seng constituents AAC Technologies and Sunny Optical Technology, both of which supply components to Apple’s iPhones, slid 2.8 per cent and 2.2 per cent to HK$155.40 and HK$143.30 respectively. Foxconn Interconnect Technology, a unit of Apple supplier Foxconn, also dropped 0.5 per cent to HK$4.47.