Hong Kong Stocks Plummet Amidst U.S.-China Trade Tensions

Hong Kong stocks hit a seven-week low and Chinese markets faced significant declines amid fears of tougher U.S. trade policies under Trump's potential appointees, including Marco Rubio and Mike Waltz. Technology and strategic sectors were hit hardest, contributing to broader concerns about China's economic slowdown.

In a tumultuous turn of events, Hong Kong stocks spiraled to a seven-week low on Tuesday, significantly pressured by looming fears of a stringent U.S. stance on trade and tariffs under a prospective hard-line secretary of state appointment by President Donald Trump.

The Hang Seng Index crumbled below the critical support level of 20,000, closing 2.8% lower at 19,846, while China's Shanghai Composite fell 1.4%.

The specter of Marco Rubio, known for his hawkish China approach, potentially leading U.S. diplomacy has unnerved investors. Reports of technology sector setbacks compounded concerns, as did sluggish export conditions and weak domestic demand, presenting troubling signs for China's economic stability.

(With inputs from agencies.)