FX.co ★ Hang Seng Inches Higher at Finish

The Hang Seng Index experienced a slight increase of 34 points, or 0.1%, closing at 26,810 on Tuesday. This movement was an effort to regain stability following significant losses in the previous two sessions. The market sentiment was bolstered by a modest rise in U.S. stock futures. This uptick was attributed to a notable surge in U.S. factory activity for January, which helped allay recent concerns. Additionally, a recovery in mainland Chinese stocks provided further support, as investors largely dismissed China's decision to increase the VAT on telecom services from 6% to 9%. The real estate and financial sectors were among the top gainers, buoyed by a private survey indicating that China's factory activity saw the most growth in three months during January. This was a stark contrast to official data suggesting an upcoming contraction as the Spring Festival approaches. CSPC Pharma saw an impressive 8% increase following the approval of a new hypertension medication. Meanwhile, Zijin Gold International advanced 7.8%, Zhaojin Mining climbed 3.8%, and Chow Tai Fook rose 1.6%, all boosted by a rebound in precious metals. Investors are now anticipating the release of Hong Kong's retail sales data for December later today, following November's report, which noted the slowest growth in three months.