China and Asia Indexes Trimmed Weekly Gains as U.S. Extended Temporary Tariffs

Li Chen
24 Jul, 2026
Hong Kong

China's indexes turned sharply lower on Friday, trimming weekly gains as international trade faced new headwinds. 

The Hang Seng Index decreased 1.4%, and the mainland-focused CSI 300 Index fell 1.3% as the U.S. president imposed a new set of tariffs ranging between 10% and 12.5% on imports from 60 countries. 

The new set of levies is imposed just to continue the temporary tariffs slapped on imported goods, which are set to expire on Friday, following the Trump administration's defeat at the U.S. Supreme Court. 

Asian markets fell sharply following the extension of U.S. tariffs on Friday amid escalating tensions in the Middle East. 

The Brent crude oil prices rose 0.1% to $100.75 a barrel after the U.S. and Iran continued to exchange military strikes, and the hostilities in the wider Middle East showed no signs easing.  

Houthi rebels continued to target Saudi vessels in the Red Sea, raising risks for global energy exports from the Gulf nations and driving energy prices higher. 

Closer to home, the People's Republic of China injected a net 500 billion yuan into the banking system through a one-year MLF operation, following the 700 billion yen liquidity operation earlier this month through a direct purchase of reverse repos.  

 

China Indexes and Stocks 

The Hang Seng Index decreased 1.4% to 24,856.78, and the mainland-focused declined 1.3% to 4,667.49. 

For the week, the Hang Seng Index increased 0.3%, and the mainland-focused CSI 300 Index advanced 2.1%. 

Foxconn Industrial Internet decreased 3.6% to ¥60.60, Eoptolink Technology declined 2.7% to ¥483.80, Zhongji Innolight fell 1.5% to ¥1,056.79, and SMIC advanced 0.9% to HK $71.40.