FX.co ★ Hang Seng Under Pressure at Finish

The Hang Seng Index fell by 441 points, or 1.9%, closing at 23,108 on Tuesday. This decline ended a streak of eight consecutive gains, affecting all sectors. Although the trade truce between China and the United States surpassed market expectations, it raised trader concerns about potential developments following this temporary pause. Profit-taking also played a role in the market downturn after the index had reached a six-week high in the previous session. Market sentiment was further negatively impacted by a decrease in U.S. futures, ahead of significant inflation data expected later today. Additionally, worries about deflation in China increased as consumer prices dropped for the third consecutive month in April, coupled with the sharpest decline in producer prices in six months. On a more positive note, some losses were mitigated by President Trump's announcement of his intention to speak directly with Chinese President Xi Jinping soon. Sunny Optical saw a significant drop of 7.6% following a report of a 14.1% year-over-year decrease in April's handset camera module shipments. Other notable decliners included BYD Electronic (-7.0%), Meituan (-5.0%), Xiaomi (-4.2%), SMIC (-4.2%), and Tencent Holdings (-2.1%).