The Hang Seng climbed by 87 points, or 0.4%, to close at 23,207 on Tuesday, halting losses from the previous two sessions and moving away from a four-week low reached the day before.
Hang Seng rises at close
The index was lifted by positive data from the Chinese manufacturing sector, as a private survey revealed that factory activity in mainland China grew at its fastest pace in four months. This followed Monday’s official data, which showed that the manufacturing sector expanded at the fastest rate in a year, providing optimism for the broader economy. The expansion in the sector offered some relief amid global economic concerns, particularly in light of ongoing trade tensions.
However, the gains were capped as traders braced for the unveiling of US President Trump's tariffs on Wednesday, adding a layer of uncertainty to the market. Investors were cautious, wary that the new tariffs could escalate trade tensions further, potentially affecting the global economic recovery. The anticipation of such policy announcements kept the market in check, as traders awaited further details that could impact the outlook for key sectors, including technology and manufacturing.
Stocks leading the rebound
Tech, commercial services, energy minerals, and miscellaneous sectors were the primary drivers of the index’s recovery. The top gainers included Wharf Real Estate, which surged 4.9%, Netease Inc., rising 4.1%, Kuaishou Technology, which climbed 3.3%, and China Shenhua Energy, up by 2.5%. Shenzhou International Group also contributed to the index’s positive movement, rising by 2.4%. These gains were bolstered by strong performances in sectors benefiting from the manufacturing expansion, as well as broader optimism about potential recovery in Chinese economic activity.
Xiaomi stock plunges
On the other hand, Xiaomi’s stock plunged 5.5% following a fatal accident involving one of its SU7 electric vehicles on March 29. This setback came shortly after Xiaomi began manufacturing electric vehicles, with the launch of the SU7 sedan last year. The accident raised concerns about the safety of the company's EVs and could pose a challenge to its plans to establish a foothold in the competitive electric vehicle market. This development weighed heavily on Xiaomi’s stock, highlighting the potential risks in the burgeoning EV sector, especially for new entrants. The combination of stronger manufacturing data and growing concerns over geopolitical risks created a mixed market environment, with traders remaining cautious about the impact of external factors on the broader economy.
