Hong Kong and Shanghai markets rise despite escalating trade war

Reuters - China and Hong Kong stocks gained on Wednesday (September 19) on expectations that Beijing will undertake further stimulus measures to cushion the impact of fresh U.S. trade tariffs on Chinese goods. By midday, Hong Kong's Hang Seng was up 1% and China's Shanghai Composite Index rose 1%, following a surge of 1.8% the previous day. Broadly Asian stocks rose as investors looking past the latest escalation in the U.S.-China trade feud, seen by some market participants as less severe than expected. The U.S. said on Monday (September 17), it will begin to levy new tariffs of 10% on $200 billion of Chinese products on Sept. 24, with the tariffs expected to go up to 25% by the end of 2018. China has hit back, saying it will levy tariffs on about $60 billion worth of U.S. goods, as previously planned, but cut the tariff rates.