FX.co ★ Hang Seng Finishes at 3-1/2-Year High

On Monday, the Hang Seng Index climbed 168 points, or 0.7%, closing at 24,994, marking its second consecutive session of gains. This increase was driven by advances across most sectors, particularly in consumer, technology, and property stocks. The market responded positively to the People's Bank of China's decision to maintain key lending rates at historic lows, which aligned with market expectations. This performance propelled the index to its highest point since February 2022, fueled by optimism surrounding U.S.-EU trade negotiations ahead of the August 1 tariff deadline. U.S. Commerce Secretary Lutnick expressed optimism about the potential for reaching a deal, while high-level discussions between China and the EU are set to occur this week, with senior EU officials scheduled to meet Chinese President Xi Jinping on Thursday. Additionally, investor sentiment was bolstered by announcements from Beijing regarding plans to implement initiatives aimed at supporting growth in sectors such as machinery, automobiles, and electrical equipment. Meanwhile, U.S. futures experienced an uptick ahead of anticipated key technology earnings, although gains in Hong Kong were tempered by caution prior to the release of June inflation data. Notable performers included China Hongqiao, which rose by 4.4%, China Overseas Land, with a 3.0% increase, and Meituan, up by 2.8%.