Turbulence in Asian Markets: Hong Kong Stocks Hit Hard by U.S.-Sino Trade Tensions

Hong Kong stocks declined on Friday amid escalating U.S.-China trade tensions and global recession fears. The Hang Seng Index opened 0.6% lower, following Wall Street's overnight drop. Although China's markets remained relatively stable, the Hang Seng suffered its worst weekly performance since February 2018.

Hong Kong's financial markets faced a challenging day on Friday as the Hang Seng Index dropped by 0.6%, influenced by heightened tensions in the U.S.-China trade war and looming global recession fears.

Despite a temporary pause on tariff hikes by U.S. President Donald Trump that had initially boosted markets, Wall Street tumbled overnight, affecting global sentiment.

The decline in Hong Kong stocks marked a tough week, as the Hang Seng Index recorded a 9.5% slide, the most significant since February 2018, amid a weakening MSCI Asia-Pacific index and Japan's Nikkei plunging by 5%.

(With inputs from agencies.)