FX.co ★ Hang Seng Dips 1.2% at Finish

The Hang Seng Index dropped by 283 points or 1.2%, closing at 23,544 on Thursday. This decline marked the end of a two-day winning streak as global stock markets, including Wall Street, experienced downturns due to concerns over U.S. fiscal stability. Concurrently, President Trump intensified efforts to push a significant spending and tax reduction bill through Congress. The index pulled back from a near two-month high, noticeably impacted by steep declines in technology, property, and consumer stocks. However, some stabilization was seen following reports that Morgan Stanley adjusted its GDP forecast for China, projecting growth of 4.5% for 2025 and 4.2% for 2024. This optimistic outlook was based on improving Sino-U.S. trade relations and anticipated fiscal stimulus ranging from CNY 500 billion to CNY 1 trillion, aimed at enhancing infrastructure. Furthermore, UBS highlighted a robust recovery in Hong Kong's IPO market, which has raised $9 billion this year—up 320% compared to the same period last year. On the corporate side, Tencent announced plans to upgrade its infrastructure to facilitate wider AI adoption. Among the significant decliners were Nongfu Spring, which fell by 4.8%, followed by Trip.com at 3.1%, Xiaomi at 2.4%, and SMIC at 2.0%.