Hong Kong’s Stock Market Faces Steepest Fall Since 1997 Crisis Over Tariff Fears, Drops 13%

Hong Kong's stock market suffers its steepest drop in nearly 30 years amid panic selling triggered by Trump’s tariff announcements. [Image via AFP]

Hong Kong’s stock market has suffered its steepest single-day decline in nearly three decades amid a wave of panic selling brought on by United States President Donald Trump’s tariff announcements.

The financial hub’s benchmark Hang Seng Index closed down 13.22 percent on Monday, after plunging as much as 13.74 percent during the day.

It was the sharpest plunge for Hong Kong stocks since the index tumbled 13.7 percent in a single day during the 1997 Asian financial crisis.

On the worst day for Hong Kong stocks during the 2007-09 global financial crisis, the index fell 12.7 percent.

The rout came after Trump doubled down on his sweeping tariffs overnight, likening the measures to “medicine”, and following China’s announcement last week that it would retaliate with a 34 percent tariff on US imports.

“Friday was a public holiday in Hong Kong, so what we are seeing is the reaction to Trump’s tariffs and China’s retaliation. So it’s a double whammy,” Carlos Casanova, a senior economist with UBP in Hong Kong, told Al Jazeera.

“To put this into context, previous retaliatory measures targeted less than 1 percent of China’s total imports. The magnitude of the last measures is unprecedented,” Casanova said.

“We’re in uncharted territory.”

Also See: Global Stocks Plunge as Trump Imposes Historic Trade Tariffs, China & EU Vow Retaliation

Alicia Garcia-Herrero, chief economist for Asia Pacific at Natixis, said the dip in Hong Kong offered a more accurate gauge of the market’s expectations for how the tariffs will affect China’s economy than the stock markets on the Chinese mainland.

“The point is, you cannot trade freely in China. You cannot short Chinese stocks. You can do all of that in Hong Kong. So it’s obviously reflecting what is going on much better than Chinese stocks,” Garcia-Herrero told Al Jazeera.

Hong Kong stocks were by far the worst performers on a dismal day overall for Asia’s markets, with equities in mainland China, Japan, South Korea, Taiwan, Australia and Singapore all suffering steep declines.

Global stock markets have shed trillions of dollars in value since Trump unveiled sweeping tariffs on almost all countries on Wednesday.

US customs authorities began imposing a baseline tariff of 10 percent on imports on Sunday, with steeper duties of between 11 percent and 50 percent set to go into effect on Wednesday.

US stocks have shed more than $6 trillion in value since Trump’s “Liberation Day” announcement.

Further steep losses are expected when Wall Street reopens on Monday, with futures tied to the benchmark S&P500 and the tech-heavy Nasdaq-100 – which are traded outside usual market hours – down 2.7 percent and 3.55 percent, respectively.

This news is sourced from Al Jazeera and is intended for informational purposes only.

News Desk

Your trusted source for insightful journalism. Stay informed with our compelling coverage of global affairs, business, technology, and more.

Recent

What is the Durand Line?

What is Durand Line?

The Durand Line, a 2,670-kilometer border drawn in 1893 between Afghanistan and British India, remains one of South Asia’s many contentious frontiers. Rejected by every Afghan government but recognized internationally, it symbolizes the region’s colonial legacy and ongoing power struggles. This backgrounder explores its origins in the Great Game, the legal and political controversies surrounding it, and its lasting impact on Pakistan-Afghanistan relations and regional security.

Read More »
Can war against terror be won without political consensus?

Can war against terror be won without political consensus?

For over two decades, Pakistan has battled the scourge of terrorism. Yet, despite military successes, the absence of political consensus continues to jeopardize lasting peace. As divisions deepen and populist narratives gain ground, the question remains: can Pakistan truly defeat terror without unity at the top?

Read More »
Shifting Sands: How Multipolar Pragmatism Is Redefining Global Alliances

Shifting Sands: How Multipolar Pragmatism Is Redefining Global Alliances

The world is entering an era of multipolar pragmatism where ideology no longer defines alliances. From NATO’s internal divides to BRICS expansion and regional realignments, states now pursue transactional partnerships driven by national interests. This fluid diplomacy creates both opportunities for middle powers and uncertainty in global governance.

Read More »
Afghan Taliban and Cross Border Terrorism in Pakistan

Afghan Taliban and Cross Border Terrorism in Pakistan

Pakistan is witnessing a sharp rise in terrorist attacks linked to the Afghan Taliban’s support for the Tehreek-e-Taliban Pakistan (TTP). A new study reveals that Afghan nationals now dominate TTP infiltration groups, exposing Kabul’s complicity in cross-border militancy. As violence escalates, Islamabad must balance border control, diplomacy, and de-radicalisation to counter

Read More »
The New Normal: End of Pakistan’s Strategic Restraint

The New Normal: End of Pakistan’s Strategic Restraint

Any hope surrounding the Pakistan–Afghanistan dialogue in Doha is colliding with renewed violence and mutual distrust. Pakistan’s recent precision strikes in Paktika, following a shattered ceasefire and terrorist attacks, signal a shift toward active defense. The talks now hinge on whether Kabul can curb militant sanctuaries and move beyond its victim narrative.

Read More »