FX.co ★ Hang Seng Slips 2.2% at Close

On the first trading day of February, the Hang Seng index plunged by 612 points, or 2.2%, closing at 26,776. This marked a continuation of losses for a second consecutive session and a decline from last week’s peak, a four-and-a-half-year high. The market faced widespread selling, with all major sectors contributing to the index's decline. Stocks in technology, property, and finance sectors each fell by 2 to 3%, reflecting a significant drop in U.S. futures, which were impacted by fresh concerns about AI valuations and volatility in precious metals, unsettling global markets. Investors paid close attention to Bitcoin prices following a sell-off over the weekend. Meanwhile, Chinese equities registered sharp declines, maintaining a trend of losses amid weak official manufacturing data, slow fiscal revenue growth, and a significant decrease in auto sales. Shares related to commodities suffered as global metal prices fell sharply after recent rallies. Significant declines were recorded in Zhaojin Mining, which dropped 9.0%, along with Zijin Gold Intl. (-8.1%), XPeng (-7.3%), SMIC (-4.0%), and Laopu Gold (-3.9%). Conversely, Sands China experienced a 3.6% rise, buoyed by strengthened gaming revenue in Macau.