FX.co ★ Hang Seng Wraps Up Strong Month Despite Friday Slump

On Friday, the Hang Seng Index dropped 284 points or 1.2%, concluding at 23,290, retreating after a robust session the previous day. This decline was triggered by a U.S. federal court's decision to reinstate tariffs originally put in place by President Trump, which overturned an earlier trade court's ruling that had previously blocked them. Market sentiment was also cautious due to China's official May PMI figures, which were anticipated over the weekend and heightened concerns about the fragility of factory activity. Meanwhile, U.S. Treasury Secretary Bessent indicated that trade negotiations with China were "a bit stalled," and suggested that they might need direct intervention from Presidents Trump and Xi. Most sectors experienced declines, particularly in the technology and consumer sectors. Auto stocks continued to fall amid ongoing fears of a price war, with BYD experiencing a 3.6% drop. Other significant losses included those of Orient Overseas, which fell by 6.9%, and Techtronic Industries, down by 4.5%. Despite this, the Hang Seng Index recorded a gain of 5.3% for the month, supported by strong momentum in initial public offerings (IPOs) in Hong Kong. Notably, over 150 companies are reportedly preparing to list in the city, with many aiming for IPOs exceeding $1 billion.