FX.co ★ Hang Seng Finishes at 1-Month High

On Tuesday, the Hang Seng Index rose by 158 points, or 0.7%, reaching a one-month high of 22,663. This marked its fourth consecutive day of gains, spurred by indications of easing trade tensions. President Trump announced on Sunday that the U.S. was actively engaging with several nations, including China, to negotiate trade agreements. On the domestic front, Hong Kong's economy expanded by 3.1% year-on-year in the first quarter of 2025, registering the fastest growth rate in five quarters. This was primarily due to a surge in tourism and strong export performance ahead of anticipated U.S. tariff increases. Additionally, a rally in the yuan to its highest level in one and a half months, along with the Hong Kong Monetary Authority's intervention to bolster the local currency, boosted investor sentiment. Nevertheless, upward momentum was tempered by data revealing that China's service sector activity in April experienced its slowest growth in seven months, amid concerns over tariffs. Meanwhile, U.S. futures experienced a slight decline as investors awaited the Federal Reserve's policy meeting, with a rate decision anticipated on Wednesday. Most sectors recorded gains, with financials, consumer stocks, and property companies leading the advance. Nongfu Spring surged by 6.8%, followed by Chow Tai Fook with a 5.7% increase, Sands China at 5.2%, and Meituan climbing 4.6%.