FX.co ★ Hang Seng Pares Losses at Finish

On Wednesday, the Hang Seng Index experienced a decline of 409 points, or 1.9%, settling at 21,057. This drop ended a six-day streak of gains as U.S. futures plummeted amid growing uncertainty regarding American trade tariffs. The markets fell from a two-month high following adjustments by major banks like Morgan Stanley and UBS, which revised China's 2024 growth forecast downward due to tariff pressures. Goldman Sachs also cautioned that earlier export frontloading might impact growth in the second quarter. In the first quarter, China's economy grew by 5.4% year-on-year, surpassing the anticipated 5.1% and maintaining its pace into the second quarter. Losses were widespread, predominantly hitting technology stocks, which fell by 3.7% after Nvidia announced a potential $5.5 billion charge resulting from new U.S. export restrictions on its H20 AI chips. Alibaba saw a decrease of 4.1%, while Tencent dropped by 2.6%. The index did, however, manage to recover some of its losses after Premier Li Qiang urged for amplified efforts to enhance consumption and domestic demand. Significant decliners included Meituan, which fell by 7.4%, Kuaishou Technology by 4.6%, Wuxi Biologics by 4.5%, and Xiaomi by 4.4%.