The US dollar tumbled along with most stocks while gold hit a fresh record high as panic gripped markets again on Friday, while China retaliated against Donald Trump's latest tariff blitz against the world's number two economy.
Beijing raised the tariffs on US imports to 125 percent near the end of trading in stocks in Hong Kong.
The benchmark Hang Seng Index ended up 1.13 percent to close at 20,914.69.
The Hang Seng China Enterprises Index rose 1.74 percent to end at 7,801.51 while the Hang Seng Tech Index climbed 1.8 percent to end at 4,900.43.
The US president's decision to delay crippling duties for 90 days sparked a frenzied scramble for equities that had been beaten down since his "Liberation Day" announcement unleashed a global panic.
However, the realisation that nothing had been resolved, coupled with Trump's decision to double down on his battle with economic superpower China, fuelled another bout of selling of US assets.
The greenback tanked against the yen, euro, pound and Swiss franc – investors dropping what is usually considered a key safe haven currency as they look to unload US risk assets.
Gold-standard Treasuries were also under pressure amid speculation that China was offloading some of its vast holdings in retaliation for Trump's measures.
The weaker dollar and the rush for safety has also sent bullion to a fresh record high above US$3,220.
Ahead of Beijing's latest tariffs move made in response to Trump, President Xi Jinping urged the European Union to join Beijing in resisting "unilateral bullying" by Washington, state media said as he met Spanish Prime Minister Pedro Sanchez.
Shortly after, Beijing said it would ramp up levies against the United States to 125 percent, compared with the 145 percent China faces.
It added that Washington's moves defied "basic economic laws and common sense" and "seriously violates international trade rules" but said it would "ignore" future US hikes.
Markets across the region were back deep in negative territory at the end of a highly volatile week.
Tokyo shed 3 percent – a day after surging more than 9 percent – while Sydney, Seoul, Singapore, Wellington and Bangkok were also in the red.
However, Hong Kong and Shanghai rose as traders focused on possible Chinese stimulus measures.
Beijing said earlier in the day that it would implement a moderately loose monetary policy in a bid to reassure investors. (AFP/Xinhua)
HK stocks end up as Beijing has last say on tariffs
2025-04-11 HKT 17:21
