02.09.202508:30:09UTC+00Hang Seng Finishes 0.5% Lower

On Tuesday, the Hang Seng Index declined by 121 points, or 0.5%, closing at 25,497. This followed a 2% rise in the previous session, as U.S. futures experienced a steep drop ahead of August’s employment data release, raising concerns about the U.S.'s assertive trade policies. The technology sector recorded the most significant declines, with traders opting to take profits following a strong rally in AI-related stocks. Additionally, shares in the property and consumer sectors also experienced a downturn, reflecting a broader pullback in mainland markets after three consecutive days of gains. However, the slide was somewhat mitigated by positive reports of manufacturing growth in China for August, based on a private survey. In international developments, President Xi Jinping announced plans to expedite the establishment of a development bank and an international energy cooperation platform during a summit involving Russia and India, highlighting China’s global strategic ambitions. On the local front, Hong Kong's retail sales grew by 1.0% year-on-year in July, recovering from a 0.3% increase. Major stocks that lagged behind included Simcere Pharma, which fell 7.6% following a discounted share sale, SMIC with a 4.2% decline, China Unicom down by 4.6%, Kuaishou Technology dropping 2.7%, and HKEX decreasing by 2.3%.