Hang Seng Plummets Again! Profit-Taking & Tariff Threats Shadow Sentiment
The Hang Seng Index in Hong Kong closed down 19 points, or nearly 0.1%, to 24,499 on Thursday (July 17). This decline marked the second consecutive day of correction after the index had previously touched a four-month high. What caused it? Profit-taking dominated trading, especially after a significant rally earlier this week.
In addition to profit-taking, the market was also overshadowed by renewed concerns regarding United States trade policy. President Donald Trump announced plans to send letters to more than 150 countries notifying them of potential tariffs of 10% to 15%. Although Trump called most of these countries "not major economies," this move still fueled global uncertainty and worried investors.
Financial sector stocks were the main drags in today's trading. Several major issuers, such as Bank of China Hong Kong, fell 1.1%, Ping An Insurance fell 0.6%, and AIA Group fell 0.4%. Pressure also came from a slight decline in US index futures, as market participants await the release of retail sales data scheduled for tonight local time.
However, on the other hand, automotive stocks managed to provide some support. The increase was driven by the Chinese government's promise to curb excessive competition and price wars in the electric vehicle sector. Li Auto shares jumped 9.5%, followed by Geely Auto (up 3.9%), and Xpeng (up 0.9%). However, the strength of the automotive sector was not enough to fully withstand pressure from other sectors.
Source: (ayu-newsmaker)
