FX.co ★ Hang Seng Drops But Closes Week with Gains

The Hang Seng index recorded a decline of 114 points, or 0.5%, settling at 23,793 on Friday. This dip interrupted a three-day winning streak and represented a pullback from a two-week high achieved the day before, largely due to downturns within the technology sector. Market participants exhibited caution in light of the ongoing ambiguity surrounding the US-China trade discussions, as a recent conversation between officials from Washington and Beijing failed to provide substantial clarity on alleviating trade tensions. The Hang Seng's decline mirrored a less favorable performance on Wall Street, further influenced by a disagreement involving Donald Trump and Elon Musk and revitalized concerns regarding US-China trade dynamics. Additionally, some investors opted to remain on the sidelines in anticipation of significant Chinese economic indicators, namely the Consumer Price Index (CPI), Producer Price Index (PPI), and trade statistics expected on the forthcoming Monday. Leading the declines were Trip.com Group, which fell 3.3%, Alibaba Health IT and Longfor Group Holdings, each down 2.8%, and BYD, decreasing by 2.2%. Despite the setback on Friday, the index accomplished a weekly rise of 0.8%, buoyed by persistent optimism for potential trade tension relief.