FX.co ★ Hang Seng Pares Gains at Finish

On Thursday, the Hang Seng index climbed 95 points, or 0.4%, closing at 23,579. This increase marked the index's second consecutive session of gains. Market sentiment improved following a statement from U.S. President Trump indicating potential tariff reductions on China, aiming to ease the sale process of TikTok, currently owned by ByteDance. Additionally, a 0.3% year-over-year decline in Chinese industrial profits for the first two months of 2025 offered a brighter outlook after the 3.3% fall recorded in 2024. Most sectors advanced, buoyed by JPMorgan's shift to a more optimistic stance on China, as it increased its fourth-quarter 2025 target for the MSCI China Index to 95, approximately a 7% rise from its previous forecast. Meanwhile, U.S. futures managed slight gains following Wall Street's losses the previous day. Despite these positive movements, the market pared initial gains due to investor caution ahead of the upcoming release of China’s March Purchasing Managers' Index (PMI) data next week. Leading the sector gains were technology and automotive stocks, overcoming any lingering uncertainties regarding U.S. car tariffs. Additionally, the pharmaceutical sector saw notable performances, with Innovent Biologics soaring 18.4%, and Wuxi Biologics and Hansoh Pharmaceutical registering solid increases of 6.1% and 6.0%, respectively.