Chinese Stocks Weaken Despite Tariff Optimism – Asia Market Wrap

Chinese shares led losses in Asia, with regional markets struggling to build on the risk-on momentum driven by earlier bets of less expansive tariffs in April.

A widely watched gauge of Chinese technology shares in Hong Kong slumped as much as 3.8%, the most in three weeks, with Alibaba Group Holding and Xiaomi among the biggest losers. US and European equity-index futures edged lower. Cryptocurrencies declined and Treasury 10-year yields fell 1 basis point to 4.33%.

Trading in Chinese shares has been choppy in recent sessions as investors become more vigilant toward corporate developments following a world-beating rally. Global markets, gripped by anxiety about the economic impact of an all-out trade war, got relief from signs the coming wave of US tariffs is shaping up as more focused than what President Donald Trump had occasionally threatened.

Beijing-based Xiaomi fell as much as 6.6% after it raised funds selling shares at a discount. The stock had more than tripled from a low in August, making it the best performer on Hong Kong’s Hang Seng Index. Alibaba slid more than 3% after its chairman warned of a potential bubble forming in datacenter construction.