FX.co ★ Hang Seng Climbs 2% at Finish

On Tuesday, the Hang Seng index surged by 488 points, equivalent to a 2.1% increase, closing at 24,177. This marked its third consecutive session of gains, also achieving a two-week high as gains were seen across all sectors. The market sentiment benefited from a robust rebound in U.S. futures following President Trump's announcement of a truce between Iran and Israel. From a policy perspective, Federal Reserve Vice Chair Bowman indicated that the time to reduce interest rates is approaching, pointing to increasing risks in the labor market. Her statements were in line with Fed Governor Waller’s remarks made last Friday, suggesting a potential interest rate cut during the upcoming meeting scheduled for July 29–30. Market participants are now attentively awaiting the testimony of Fed Chair Jerome Powell before Congress, which is anticipated later today. In the Chinese markets, stocks reached a three-month high, mirroring widespread gains across Asia. Additionally, the yuan appreciated to near a two-week high against a weakening U.S. dollar, a reflection of improved investor sentiment and rising capital inflows. Leading the upward momentum were technology and automotive stocks, with notable increases seen in Li Auto (3.8%), Horizon Robotics (3.3%), Xiaomi (3.7%), and China Unicom (2.0%).