FX.co ★ Hang Seng Pares Losses at Close

On Thursday, the Hang Seng Index fell by 151 points, equating to a 0.6% decline, closing at 24,070. This downturn marked a reversal from previous gains, with notable declines in consumer, financial, and technology sectors. Investors exercised caution in anticipation of crucial U.S. payroll data, following the first decrease in private sector employment in over two years. In China, a private survey revealed that services activity had dropped to a nine-month low in June, driven by the most significant decline in foreign sales in more than two years due to increasing trade challenges. Growing competition among mainland e-commerce giants has also sparked concerns about profit margins. However, the index pared some of its early losses as U.S. futures saw a rise after Trump finalized a trade agreement with Vietnam. In the interim, U.S. semiconductor design companies reported a relaxation of export restrictions to China, and the U.S. House narrowly approved Trump’s proposed tax and spending bill. Alibaba experienced a nearly 3% decline after unveiling a CNY 50 billion subsidy initiative, while Meituan and JD.com saw downturns of 2.4% and 2.3%, respectively. In contrast, pharmaceutical stocks gained, buoyed by new policy support for innovative drugs.