FX.co ★ Hang Seng Rises 0.6% to Close at 7-Week High

The Hang Seng Index increased by 146 points, or 0.6%, to close at 23,828 on Wednesday, marking its second consecutive session of gains and reaching its highest level since late March. This upward movement was observed across all sectors, with consumer, technology, and property stocks leading the advance. The market sentiment was bolstered by an optimistic outlook from Morgan Stanley, which upgraded its targets for Chinese stock indices due to structural improvements and advancements concerning tariffs and corporate earnings. Nevertheless, the potential for further gains was restrained by a significant decline in U.S. futures, as skepticism arose about the robustness of Wall Street's recent rally. Additionally, Morgan Stanley cautioned that deflationary pressures in China could persist until at least 2026. Mining stocks benefited as gold prices reached a one-week high, with Zijin Mining increasing by 7.5%. Electric vehicle battery leader CATL saw a rise of 9%, building on a robust 16% debut on the previous day. Other significant performers included electric vehicle manufacturers such as Li Auto, which increased by 3.8%, and Geely Auto by 2.6%, alongside pharmaceutical companies like Wuxi Biologics (up 2.1%), Hansoh Pharmaceutical (up 1.4%), and Innovent Biologics (up 0.7%).