HSI Slides As Asian Steel, Aluminium Shares Drop

Hong Kong stocks tumbled on Friday as global markets were rocked by Donald Trump's decision to slap tariffs on steel and aluminium imports, which fanned fears of a trade war.

The Hang Seng Index sank 1.5 percent, to 30,568 by the break.

On the mainland, the benchmark Shanghai Composite Index lost 0.3 percent, to 3,263, while the Shenzhen Composite Index dropped 0.4 percent, to 1,825.

Steel and aluminium producers across Asia sank on news of Trump's controversial tariffs, though some analysts said the long-term effects on the sector might not be as bad as thought.

In Shanghai, Aluminium Corporation of China (Chalco) shed more than one percent while Baoshan Iron and Steel dropped 3.4 percent.

In Seoul, South Korea's largest steelmaker POSCO tumbled 4.5 percent in early trade, while Hyundai Steel slumped 2.8 percent.

Tokyo-listed Nippon Steel and Sumitomo Metal dived more than four percent, and its smaller rival JFE Holdings was down 3.3 percent, with Rio Tinto in Sydney off 1.8 percent. (AFP)

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