The Hang Seng surged 299 points or 1.5% to close at 20,128 on Tuesday, slightly rebounding from Monday’s historic 13.2% fall, the steepest one-day loss since 2008. Gains were broad-based, led by tech and consumers, as hopes emerged that Washington might ease its tariff stance.
Hang Seng pares gains at finish
In response to the recent market turmoil, China moved state-owned firms and listed companies to help calm sentiment. Its financial regulator also plans to raise equity asset caps for some insurers by about 5%, aiming at channeling more long-term capital into stocks and aiding the economy.
The rally reflected a tentative return of investor confidence, though underlying caution remained palpable. While Tuesday's rebound offered some respite, the index trimmed early gains as fears persisted over the impact of a prolonged trade war on global growth and corporate earnings. Beijing, for its part, vowed to “fight to the end” to guard its national interests, signaling no immediate resolution to the standoff with Washington.
Some traders stayed on the sidelines
Some traders also stayed on the sidelines ahead of key macroeconomic data, including China’s March CPI and PPI reports due later this week. February data showed a 0.7% year-on-year decline in consumer prices, while producer prices dropped for the 29th straight month, highlighting persistent deflationary pressures in the economy. Weak inflation readings could provide further impetus for policymakers to deploy additional stimulus measures.
Top movers on the day included Horizon Robotics, which soared 12.8% amid optimism around AI-sector resilience, followed by Mixue Group and Xiaomi, both up 7.0%, and Trip.com, which gained 5.8% on expectations of a strong travel rebound during the upcoming holiday period.
