FX.co ★ Hang Seng Turns Early Gains to Finish in the Red

On Tuesday, the Hang Seng Index experienced a slight decline, closing at 24,163, as initial strength in early trading gave way to losses in the tech and consumer sectors, impacting market sentiment. Some investors opted to realize their gains after the index reached its highest level in nearly three months in the previous session. Caution prevailed among market participants as Chinese mainland stocks fell ahead of the second day of U.S.-China trade negotiations, where key issues were set to be addressed. Despite an agreement between Washington and Beijing to ease tariffs for 90 days, trade flows remained sluggish. Chinese exports to the U.S. recorded their steepest decline since the pandemic, and U.S. imports from China dropped almost 20% in May. Electric vehicle (EV) stocks also faced downward pressure amid intensifying competition among leading Chinese EV manufacturers. Geely joined Great Wall Motor in critiquing BYD over its aggressive price reductions. Notably, Li Auto's shares declined by 3.4%, while Geely Auto saw a 0.6% drop. Other significant decliners included Mixue Group, down 5.9%, Meituan, which fell 2.8%, Xiaomi Corporation, with a 1.5% decrease, Kuaishou Technology, declining by 1.4%, and Tencent Holdings, down by 1.0%.