FX.co ★ Hang Seng Closes Near Flat

On Monday, the Hang Seng index saw minimal movement, closing at 23,333 after recovering from early losses, primarily due to gains in consumer stocks. Market sentiment was bolstered by the robust performance of China's manufacturing sector in April, even amidst escalating U.S. tariffs. Meanwhile, the decline in new home prices on the mainland slowed, marking the smallest decrease in 11 months, although it still represented the 22nd consecutive monthly drop. Investors are also keenly anticipating a forthcoming review of key lending rates by China's central bank, following a period of record-low rates in recent months. On the domestic front, Hong Kong's economy expanded by 3.1% year-on-year in the first quarter of 2025, aligning with preliminary data and rising from a revised growth rate of 2.5% in the previous quarter, fueled by robust export activity ahead of anticipated U.S. tariff increases. In corporate news, Nvidia is exploring the establishment of a research and development facility in Shanghai, highlighting China's strategic role. Leading gainers included Pop Mart International with a 5.7% increase, Meituan at 2.7%, SMIC at 2.2%, and Trip.com at 2.0%. On the downside, Zhejiang Leapmotor fell by 3.5%, Sunny Optical by 2.8%, Li Auto by 2.7%, and Chow Tai Fook by 2.4%.