FX.co ★ Hang Seng Reverses Early Gains to End Lower

On Wednesday, the Hang Seng Index dipped by 72 points, or 0.3%, closing at 24,518. This decline marked a departure from the four-month high reached earlier in the day and ended a four-day winning streak. The shift in sentiment was influenced by profit-taking and a downturn in U.S. futures, following June's inflation figures that suggested tariffs might be driving prices upward, casting doubt on potential rate cuts from the Federal Reserve. Furthermore, President Trump hinted at the possible imposition of tariffs on pharmaceuticals by the end of July, with additional levies on semiconductors likely to follow. He indicated that these targeted import taxes could coincide with broader "reciprocal" tariffs slated for implementation on August 1. Adding further to market concerns, Dutch technology leader ASML issued a warning of stagnant growth in 2026, despite surpassing earnings and revenue forecasts for the second quarter of 2025. Among the notable decliners were Pop Mart International, which fell 4.3%, Zhejiang Leapmotor Tech, down 3.0%, KE Holdings, which slipped 2.7%, and China Longyuan Power, dropping 2.5%.