FX.co ★ Hong Kong Equities Rise After 3-Day Slide

On Tuesday morning, Hong Kong's stock market witnessed a 166-point or 0.7% increase, bringing the Hang Seng Index to 24,051. This uptick halted a three-day decline, as market sentiment improved following U.S. President Trump's indication of openness to future trade negotiations, despite his administration's recent implementation of new tariffs on various countries. There is growing optimism that China might avoid additional tariffs due to a trade pause with the U.S., with the scheduled "reciprocal" tariffs set for an August 1 introduction. In domestic economic news, Hong Kong's foreign exchange reserves climbed for the second consecutive month in June, reaching their highest point in nearly two and a half years. Nonetheless, a tepid performance from Wall Street limited further gains. Investors remained vigilant ahead of China's release of June's Consumer Price Index (CPI) and Producer Price Index (PPI), with ongoing concerns about deflation. In May, consumer prices dropped for the fourth consecutive month and producer deflation intensified. Most industry sectors experienced growth, notably financials, technology, and consumer stocks. Prominent gainers included Kuaishou Technology with a 2.9% rise, Chow Tai Fook Jewellery at 2.5%, Sunny Optical advancing by 2.1%, and Xiaomi increasing by 1.8%.