China and Hong Kong Markets Drop Amid Tariff Concerns

China and Hong Kong stocks fell as investors remained wary of U.S. President-elect Donald Trump's tariff threats. The Shanghai Composite index decreased by 0.99%, with various sectors, including financials and consumer staples, experiencing declines. Notable companies like Baidu reported lower-than-expected earnings, impacting investor sentiment.

On Friday, China and Hong Kong's stock markets experienced a decline as investors grew cautious over U.S. President-elect Donald Trump's tariff threats. This investor sentiment was further dampened by disappointing corporate earnings.

By midday, the Shanghai Composite index saw a 0.99% drop, and China's blue-chip CSI300 index was down 1.02%, with sectors such as financials and consumer staples facing losses. Notably, Baidu's shares plummeted 9% in Hong Kong following underwhelming quarterly results.

Morgan Stanley highlighted a decline in A-share sentiment, anticipating continued volatility due to factors like sluggish housing investment and tariff impacts. Despite recent government stimulus efforts, significant improvements in advertising and consumer spending haven't materialized.

(With inputs from agencies.)