FX.co ★ Hang Seng Extends Losses, Still Ends Week Slightly Higher

On Friday, the Hang Seng index declined by 143 points, or 0.6%, closing at 23,892. This marked a continuation of the downward trend for the second consecutive session, as Wall Street futures faced a downturn and global markets experienced declines in response to Israel’s military strike on Iran earlier that day. The rise in tensions in the Middle East introduced additional uncertainty into global markets, already strained by President Trump's aggressive and capricious trade policies. Moving away from a nearly three-month high, the index saw declines across most sectors. The technology index notably dropped by 1.7%, with significant losses in companies such as Horizon Robotics (-4.3%), Trip.com (-3.2%), SMIC (-2.3%), and Meituan (-1.8%). Despite these declines, the Hang Seng recorded a weekly gain of 0.4%, reflecting its second consecutive weekly rise. This increase was bolstered by indications of improving relations between China and the U.S., following a more constructive dialogue in trade discussions earlier in the week. Concurrently, Beijing encouraged mainland firms listed in Hong Kong to consider issuing shares in Shenzhen as part of broader strategies to enhance capital market connections.