FX.co ★ Hang Seng Turns Early Gains to Finish Sharply Lower

The Hang Seng index fell by 448 points, or 1.7%, closing at 25,441 on Tuesday. This marked the index's seventh consecutive decline, highlighting its longest losing streak in recent months. Initially showing signs of strength in the morning, the index ultimately hit a five-week low amid escalating trade tensions and uncertainty regarding a potential tariff agreement between China and the United States anticipated later this month. Market sentiment deteriorated following Beijing's announcement of sanctions on five U.S.-connected subsidiaries of South Korea’s Hanwha Ocean. Additionally, both China and the U.S. introduced new port fees on shipping companies, escalating their trade dispute to a new dimension. Investors also exercised caution ahead of China's upcoming Consumer Price Index (CPI) and Producer Price Index (PPI) data for September, scheduled for release on Wednesday, due to ongoing deflation concerns. The decline of the index was widespread, with all sectors experiencing setbacks, particularly technology, consumer goods, and property sectors. Notably, Semiconductor Manufacturing International Corporation (SMIC) plunged 9.2%, followed by significant declines of 6.7% for Kuaishou Technology, 5.4% for Hansoh Pharmaceutical, and 5.2% for Galaxy Entertainment. However, some losses were mitigated by positive data on China's car sales in September and indications that President Trump remains poised to meet with Xi Jinping in late October.