FX.co ★ Hang Seng Pares Losses at Finish

On Monday, the Hang Seng index experienced a decline, dropping 132 points or 0.6% to conclude at 23,158. This marked its second consecutive fall amidst widespread sectoral losses. The market sentiment was negatively impacted by renewed trade tensions between China and the United States. China refuted President Trump's allegations of breaching a Geneva trade agreement, labeling the accusations as "groundless" and promising to adopt "forceful measures" in response. Concurrently, U.S. futures took a significant downturn following President Trump's announcement of a planned increase in steel tariffs to 50% effective Wednesday, prompting the European Commission to warn of potential retaliatory actions. Despite the backdrop of heightened worries about the debt ceiling, earlier market losses were slightly mitigated after Treasury Secretary Bessent assured investors that the U.S. "will never default." Meanwhile, mainland markets remained closed due to a public holiday, with trading set to resume on Tuesday. In the sector of automakers, the downturn persisted due to ongoing fears of a price war, with companies like Li Auto witnessing a 2.2% decline, while BYD and Nio saw decreases of 2.0% and 2.5%, respectively. Significant declines were also noted with Akeso Inc. experiencing a 10.4% drop, Longfor Group falling by 5.4%, and CSPC Pharma decreasing by 4.7%.