Hong Kong Stocks Drop 2% Amid Lingering U.S. Economic Uncertainties

Due to concerns surrounding the U.S. economy, Hong Kong markets saw a 2% decline on Friday while Asia-Pacific markets saw mixed trading.  Healthcare and consumer cyclical companies caused Hong Kong's Hang Seng Index to drop 2.19% to settle at 23,689.72, while the CSI 300 in mainland China declined 1.52% to conclude at 3,914.7.

A seven-day winning streak was achieved by the broad-based Topix, which gained 0.29% to close at 2,804.16, while Japan's Nikkei 225 dropped 0.2% to 37,677.06.  The Topix had already reached its highest intraday level since July 2024, 2,818.04.

The small-cap Kosdaq fell 0.79% to close at 719.41, while South Korea's Kospi gained 0.23% to 2,643.13, marking five days of advances.

After reaching a two-year high of 4% in January, headline inflation in Japan increased 3.7% year over year in February. An attempt to prolong Wednesday's rise driven by the Federal Reserve failed, and U.S. stock futures hovered around the flatline.

The U.S. market's attempts to recover from a month-long decline were thwarted overnight as the S&P 500 fell 0.22% to settle at 5,662.89. Due to losses in Apple and Alphabet, the Nasdaq Composite fell 0.33% to close the day at 17,691.63. The Dow Jones Industrial Average closed at 41,953.32, down 11.31 points, or 0.03%.