China, HK stocks drop as investors remain wary of US tariff risks

China and Hong Kong stocks fell broadly on Friday as investor sentiment cooled due to concerns that new U.S. tariffs could shake the global economy. ** At the midday break, the Shanghai Composite index was down 0.71% at 3,349.68 points.

China and Hong Kong stocks fell broadly on Friday as investor sentiment cooled due to concerns that new U.S. tariffs could shake the global economy.

** At the midday break, the Shanghai Composite index was down 0.71% at 3,349.68 points. ** China's blue-chip CSI300 index was down 0.55%, with its financial sector sub-index lower by 0.39%, the consumer staples sector down 0.83%, the real estate index down 0.47% and the healthcare sub-index up 0.03%.

** Semiconductor and energy stocks dropped 2.1% and 1.5%, respectively, to lead the declines. ** The Chinese H-share index listed in Hong Kong, the Hang Seng China Enterprises Index, fell 1.1% to 8,582.09, while the Hang Seng Index was down 0.89% at 23,368.67.

** Hong Kong-listed tech giants lost 1.7%. ** Investors are still gauging the 25% tariff on auto imports announced by U.S. President Donald Trump and its impact on major exporting economies.

** Trump also plans to implement new reciprocal tariffs on several trading partners from April 2. ** Sentiment towards mainland Chinese stocks dropped with lower trading volumes, Morgan Stanley analysts, led by Laura Wang, said in a note on Friday.

** "We expect higher volatility amid tariff uncertainty but believe green shoots on earnings and liquidity warrant further index upside towards year-end," they said. ** The smaller Shenzhen index was down 0.73%, the start-up board ChiNext Composite index was weaker by 0.58% and Shanghai's tech-focused STAR50 index was down 0.75%​.

** Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.71% while Japan's Nikkei index was down 2.33%.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)