The Hang Seng Index remained relatively stable on Tuesday, closing around 26,438 after experiencing minor declines earlier in the day. Investor sentiment was buoyed by another record-breaking close on Wall Street the previous day. Expectations are mounting that the Federal Reserve will resume its monetary easing policies this week and possibly signal further cuts.
Gains in technology and consumer stocks compensated for weaknesses seen in the property and financial sectors. Investors also monitored developments surrounding a framework agreement between the US and China, aiming to place TikTok under US-controlled ownership. A final decision is anticipated during a call between President Trump and Xi Jinping this Friday.
Mainland Chinese shares showed a subdued performance, balancing Beijing's stimulus prospects against renewed trade tensions sparked by China's allegations against Nvidia for anti-monopoly violations. In corporate news, Tencent Holdings is reportedly planning to issue offshore yuan bonds.
Key movers on the index included Meituan, which rose by 4.4%, Trip.com by 4.2%, Shenzhou International by 3.6%, and Geely Auto by 3.1%. In contrast, JD Health declined by 5.8%, Sands China by 4.1%, and China Hongqiao by 3.0%.
