“There was definitely some expectation that Trump would continue to bluff, so actual implementation is news,” said Kieran Calder, head of Asia equity research at Union Bancaire Privee in Singapore. “The situation could easily escalate as China retaliates. It is negative for China exporters and general sentiment.”
Chinese stocks dropped after US President Donald Trump signed an order to increase tariffs on the country, testing investors’ nerves before a crucial political meeting in Beijing this week.
A gauge of Chinese shares listed in Hong Kong declined as much as 2.5%, while the onshore benchmark CSI 300 Index fell as much as 0.8%. BYD was among the biggest decliners, after a bumper share sale, but selling pressure hit almost every sector.
