EU Tariffs Soften, Hang Seng Continues Rally
The Hang Seng Index rose 182 points (0.7%) to close at 26,793 on Tuesday, posting its third consecutive day of gains with gains across sectors. Market sentiment improved after signs of easing trade tensions, following news that the European Union was re-evaluating tariffs on Chinese-made electric vehicles due to take effect in 2024.
Although briefly pushing to a two-month high, the Hang Seng's gains were later pared back by profit-taking. Pressure also came from falling mainland Chinese stocks, as investors opted for caution ahead of the release of key Chinese data later this week.
Outside the region, a slight decline in US futures also restrained market momentum, amid concerns about the Fed's independence following the investigation into Chairman Jerome Powell. This situation has led global markets to adopt a wait-and-see approach ahead of major events such as inflation data (CPI) and the start of the earnings season.
On the individual stock front, GigaDevice Semiconductor stole the show with a 40% surge on its Hong Kong debut. Dongfeng Motor surged 6.4% amid news of its privatization plans. Other solid gains were seen in Wuxi Biologics (+5.6%), Zijin Gold Intl. (+4.8%), China Taiping Insurance (+4.6%), and Henderson Land (+2.9%).
Source: Newsmaker.id
