FX.co ★ Hang Seng Under Pressure at Close

On Tuesday, the Hang Seng Index experienced a notable drop, shedding 454 points or 1.7%, marking its most significant one-day decline since mid-October and closing at a two-week low of 25,930. This decline, extending into its third consecutive session, was driven by widespread losses across various sectors. Investor sentiment was negatively impacted by a downturn in global markets, with traders anxiously anticipating Nvidia’s earnings report amid valuation apprehensions and postponed U.S. data releases, including September’s employment figures. The technology sector saw a reduction of nearly 2% as the recent rally began to show signs of wearing out. Sharp losses were also observed in the property, financial, and consumer sectors, fueled by caution preceding China’s monthly loan prime rate adjustment. Further exacerbating investor pessimism were geopolitical concerns, as China issued a warning against travel to Japan and chose not to schedule a leaders’ meeting at the forthcoming G20 summit. Within this context, XPeng’s share price plummeted 10.9% following a slight shortfall in vehicle margins and modest guidance for the fourth quarter; China Hongqiao dropped 6.4% due to a discounted share sale, and Zhejiang Leapmotor declined 4.7% despite reporting nearly doubled revenue for the third quarter.