FX.co ★ Hang Seng Dips 1.6% Weekly on Tariff Jitters, China Long Holidays

On Friday, the Hang Seng Index fell by 356 points, or 1.4%, closing at 26,128. This decline marked the second consecutive session of losses, driven by a slump in consumer stocks following President Trump's proposal for significant tariffs. The proposed tariffs include a 100% levy on branded drugs not manufactured in the United States, a 25% tariff on heavy trucks, and up to 50% on furniture. Investor sentiment was also cautious as the upcoming National Day and Mid-Autumn Festival holidays in China, beginning on October 1, approached. Hong Kong markets are scheduled to close on October 1 and 7. Particularly affected were pharmaceutical stocks, with the innovative drug index in Hong Kong declining by 3%, led by drops in Wuxi Biologics (-2.8%), Innovent Biologics (-2.2%), and Hansoh Pharma (-2.1%). Technology stocks also experienced setbacks, with Horizon Robotics falling by 8.7%, SMIC by 4.9%, and Kuaishou Tech by 3.4%. Over the week, the index decreased by 1.6%, breaking a three-week streak of gains. This decline mirrored Wall Street's retreat from record highs and stronger U.S. economic data that dampened expectations for significant Federal Reserve rate cuts, despite advocate Stephen Miran's calls for aggressive easing.