FX.co ★ Hang Seng Rebounds 1.3% But Ends Week Lower

The Hang Seng Index experienced a rise of 293 points, or 1.3%, closing at 23,530 on Friday. This positive movement reversed the declines seen over the previous three days as various sectors rallied. The index recovered from a three-week low, buoyed by the People's Bank of China's decision to maintain key lending rates unchanged. This decision followed a cut to record lows in May aimed at stimulating growth and mitigating the impact of increasing U.S. tariffs. Additionally, investor sentiment improved as the U.S. downplayed rumors of potential military action against Iran alongside Israel. Despite the daily gains, the index recorded a weekly loss of 1.5%, marking its first decline in three weeks and the most significant drop since early April. This was a result of the Federal Reserve's cautionary message regarding "meaningful" inflation risks, hinting at a slower pace of rate cuts projected for 2026, though allowing for the possibility of two rate reductions this year. Among the notable performers was United Laboratories, which rose by 2.2% following a $180 million upfront payment from Novo Nordisk as part of an exclusive licensing agreement. Other significant gainers included Sunny Optical Technology with a 4.2% increase, Mixue Group rising by 3.1%, and SMIC up by 1.9%.