Asian stocks experienced mixed performance on Friday as investors reacted to rate cut hopes and concerns over US tariffs on China. Most Asian stocks rose, tracking the strength in Wall Street, after more signs of a cooling US labor market reinforced expectations for rate cuts later this year. However, Chinese stocks lagged behind their peers due to fears of new trade tariffs imposed by the Biden administration on the country, specifically targeting the electric vehicles sector. The Shanghai and Shenzhen CSI 300 indexes fell about 0.5% each, retreating from recent peaks and hovering just below bull market territory. Hong Kong's index, on the other hand, was the best performer among its Asian peers, rising 1.1% despite losses in heavyweight mainland and EV stocks. The Nikkei 225 rose 0.4%, while the index added 0.7%. The ASX 200 also rose 0.4%, and South Korea's index added 0.5%. [535d25d7]
In related news, Hong Kong stocks rallied as regulators consider waiving dividend tax for individual investors. The benchmark Hang Seng Index jumped 1.7% before paring gains. The proposal to exempt individual investors from paying taxes on dividends earned from Hong Kong stocks bought via Stock Connect is under consideration. The waiver could boost investor sentiment and potentially attract more investment in Hong Kong stocks. [fe6d7f8e]