Hang Seng turns early losses to end notably higher

The Hang Seng Index rose 167 points, or 0.8%, to close at 21,562 on Tuesday, rebounding from earlier losses amid a surge in U.S. futures. The late-session recovery came after a rough start, following Monday’s selloff on Wall Street, where stocks tumbled after President Trump sharply escalated his criticism of Federal Reserve Chair Jerome Powell, calling him a “major loser” and demanding immediate and aggressive interest rate cuts. The intense political pressure on the Fed injected fresh volatility into global markets but also fueled hopes for looser monetary policy, boosting risk appetite.

Hang Seng turns early losses to end notably higher

Investor sentiment in Hong Kong was further buoyed by reports that China’s so-called "national team" — a group of state-backed funds — along with a wave of retail investors, stepped in to stabilize mainland equities, reinforcing confidence across regional markets. All major sectors posted gains, led by property, financials, and consumer stocks, which saw broad-based buying. Among individual movers, Wanda Hotel Development surged 9.7% after Tongcheng Travel announced plans to acquire a 100% stake in the company, a deal seen as potentially unlocking synergies in China’s recovering tourism and hospitality sector. Logistics giant S.F. Holding rallied nearly 4% on the back of stronger-than-expected revenue growth for March, signaling resilient demand in the freight and delivery industry.

Pharma stocks outperformed

Pharmaceutical stocks also outperformed, with CSPC Pharmaceutical soaring 8.8%, Hansoh Pharmaceutical climbing 6.8%, and Wuxi Biologics gaining 4.9%, as investors rotated into defensive and growth sectors amid lingering market uncertainty. However, not all stocks participated in the rally. E-commerce heavyweights came under pressure, with JD.com dropping 6.7% and Meituan falling 5.7%, as concerns mounted over narrowing profit margins in China’s fiercely competitive food delivery and online retail markets. Investors remained wary that intensified price wars and regulatory scrutiny could weigh heavily on sector earnings in the coming quarters. Overall, the Hang Seng’s turnaround reflected cautious optimism but also underscored the fragile sentiment in global equities, with markets highly sensitive to political developments, central bank signals, and intervention efforts by major economies.