Stocks drop as China promises to retaliate after latest US tariffs

Chinese and Hong Kong stocks fell again on Wednesday afternoon, as Beijing promised to retaliate after Donald Trump's latest $ 200 billion tariffs on imports from the country.

During lunch time, he was "shocked" by Washington's latest actions and promised to fight back against the tariffs.

The Chinese Ministry said that US stocks "hurt China, wounding the world and wounding the United States." that "irrational action was unpopular."

The CSI 300 of major stocks in Shanghai and Shenzhen fell 2 percent with all market segments down. The Hang Seng China Enterprises index of China's largest listed companies was down 1.8% in Hong Kong, while the broader Hang Seng index fell 1.6%. percent. The indexes fell by 2.8% and 2.3% respectively at the beginning of the morning before returning to the lunch break.

Stock market declines reflected reactions to new developments in the US-China trade dispute. said Hannah Anderson, strategist of JPMorgan Asset Management.

"Investors will need time to evaluate the price of … we can expect the reaction to be a little more negative than what was announced" Mrs. Anderson said

that the Chinese currency was also under pressure following the latest news on tariffs.The onshore renminbi – which is subject to a 2% margin of fluctuation on both sides of a median – is down from 0.6% to 6.6663 Rmbas per dollar The offshore renminbi was 0.5% lower at RMB 6,682

Elsewhere in the region, the Japanese Topix was down 0.8%, the southern Kospi -Korean 0.6% and Australian stocks 0.7%.