China, Hong Kong Stocks Post Steepest Weekly Losses Since April

Mainland China and Hong Kong stock markets experienced significant declines, marking their steepest weekly losses since April, primarily due to soft domestic economic data and concerns over U.S. President Donald Trump's new tariffs on numerous trading partners. The Shanghai Composite and CSI300 indexes both fell, with the Hang Seng index in Hong Kong dropping sharply, reflecting investor anxiety over the impact of tariffs and weakening factory activity in China, which contracted for the fourth consecutive month. Economists warn that tariffs, particularly on ASEAN countries that represent a substantial portion of China's exports, will strain regional supply chains and dampen trade momentum. Despite ongoing U.S.-China trade talks, progress remains uncertain, and market optimism has faded amid limited fresh stimulus measures from China’s recent Politburo meeting. The tariff measures have also affected broader Asian markets, with significant declines in South Korea, Taiwan, and Japan, while global investors await critical U.S. employment data that could influence Federal Reserve rate decisions. Overall, these developments underscore growing concerns about the durability of China's economic growth and corporate earnings in the face of escalating trade tensions and global market uncertainties.