FX.co ★ Hang Seng Soars 1.6% at Finish

The Hang Seng Index experienced a notable increase, climbing 338 points or 1.6% to close at 21,395 on Thursday, recovering from its previous session's downturn. This positive shift was influenced by a rise in US futures, following President Trump's remarks about "significant progress" in negotiations intended to prevent higher tariffs on Japan. Investor confidence was further bolstered by Chinese President Xi Jinping's advocacy for regional solidarity and his promotion of an "Asian family" during his tour of Southeast Asia. Gains were widespread across the market, particularly in the technology, real estate, and consumer sectors. However, the potential for further growth was limited by Fed Chair Powell's cautionary note that tariffs might dampen growth and elevate prices. Concurrently, Goldman Sachs projected that US investors could potentially divest up to $800 billion from mainland Chinese stocks under a financial decoupling worst-case scenario. Key contributors to the market's rise included Tencent, which improved by 2.0%, Xiaomi with a 1.2% gain, and Meituan, which rose by 0.8%. Other notable performers were Mixue Group, surging by 6.5%, KE Holdings up by 5.0%, Longfor Group increasing by 4.7%, and Kingsoft Corp, which grew by 3.4%.