Hong Kong stocks closed mixed as traders reduced risk-taking amid a countdown to US President Donald Trump’s expected tariff measures against most of its trade partners. The Hang Seng Index (HSI) down 0.1%, the Hang Seng Tech Index (HSTECH) up 0.4%.

Laopu Gold fell 8%; Xiaomi fell 4%; Leapmotor rose 13%; Kuaishou rose 2%; SMIC, Li Auto, Nio rose 1%; Alibaba rose 0.2%.

Worries about a prolonged and bitter US-China trade war have kept risk appetite at bay since Trump began his second term in the White House with promises to slap tariffs on foreign goods from oil to cars. The Hang Seng Index has lost almost 6 per cent since hitting a 14-month high on March 19.

“This trade war will differ for emerging markets compared to Trade War 1.0,” said Alex Wolf, head of Asia investment strategy at J.P. Morgan Private Bank. “This time could be different as tariffs are expected to be applied more broadly. China’s growing dominance in export market share is causing tension not only with the US but also with many emerging markets.”

Potential US tariffs on China could be “too large to absorb, too conspicuous to dodge”, according to a report from Barclays last week. Tariffs would increasingly take their toll on profits, wiping out the narrow margins in those industries that are particularly exposed to US measures, it added.