FX.co ★ Hang Seng Slides 2% Yet Marks First Monthly Gain in Four

On Friday, the Hang Seng Index plummeted by 581 points, or 2.1%, closing at 27,387, effectively breaking its seven-session upward momentum. This decline came amid sinking U.S. stock futures as anticipation looms over President Trump’s forthcoming decision on the Federal Reserve chair appointment. The index retreated from its peak over the past four and a half years, as traders opted to secure profits ahead of China's January Purchasing Managers' Index (PMI) release. Investor sentiment was additionally dampened by a significant downturn in mainland shares, precipitated by a steep decline in metal prices. The downturn was widespread across Hong Kong, with the consumer and technology sectors each falling over 2%. CK Hutchison dropped dramatically by 4.8% after a Panama court voided crucial port contracts. Notable among the most severe decliners were Zijin Mining, which tumbled 11%; Zhaojin Mining, down 9.6%; CSPC Pharmaceutical, decreasing by 9.8%; and Geely Automobile, falling by 4%. Nevertheless, the market achieved a third consecutive weekly gain, inching up by 2.4%, marking the first monthly increase in four months, with a nearly 7% rise. This growth was bolstered by positive signs from Hong Kong’s recovering property sector. Concurrently, Beijing is considering the issuance of hundreds of billions of yuan in special bonds to bolster the capital of major insurers.