FX.co ★ Hang Seng Pares Gains at Finish

The Hang Seng Index saw a robust recovery on Tuesday, climbing 299 points or 1.5% to settle at 20,128, in a rebound from Monday's remarkable 13.2% plunge—the sharpest one-day drop since 2008. The gains were widespread, spearheaded by the technology and consumer sectors, amid emerging optimism that Washington might reconsider its tariff policies. Amid the recent market volatility, China's government urged state-owned and listed companies to stabilize investor sentiment. Additionally, Chinese financial regulators are preparing to increase the equity asset cap for select insurers by around 5%, a move intended to inject more long-term capital into the stock market and bolster the economy. Nevertheless, the index pared back some of its initial gains due to ongoing concerns about the potential repercussions of a trade war on global economic expansion. Meanwhile, Beijing has vowed to staunchly defend its interests. Traders approached the situation with caution, anticipating China's forthcoming March CPI and PPI figures, set to be released later this week. For context, February saw the CPI decrease by 0.7% year-on-year, with the PPI on a downward trajectory for the 29th consecutive month. Among the top gainers were Horizon Robotics, with a 12.8% rise, Mixue Group and Xiaomi both up by 7.0%, and Trip.com advancing by 5.8%.