Hang Seng Climbs 2% on Geopolitical Relief, Rate Cut Hopes
The Hang Seng soared 488 points or 2.1% to close at 24,177 on Tuesday, rising for the third session and reaching a two-week peak as all sectors advanced. Sentiment was lifted by a strong rebound in U.S. futures after President Trump announced a truce between Iran and Israel.
On the policy front, Fed Vice Chair Bowman said the time to cut interest rates was nearing, citing growing risks to the labor market. Her remarks echoed Fed Governor Waller’s comments on Friday, signaling a possible rate cut at the July 29–30 meeting. Investors now await Fed Chair Jerome Powell’s testimony before Congress later today.
In China, stocks climbed to a three-month high, tracking broad gains across Asia. Meanwhile, the yuan strengthened to a near two-week high against a softer U.S. dollar, reflecting improved sentiment and capital inflows. Tech and auto names led the charge, with gains from Li Auto (3.8%), Horizon Robotics (3.3%), Xiaomi (3.7%), and China Unicom (2.0%).
Source: Trading Economics
