Hang Seng Index News: Will Beijing’s Pledges Push the Index Beyond 24,500?

US Economic Indicators and Beijing Stimulus Lift the Hang Seng Index

Market hopes for effective stimulus measures to tackle a waning labor market and deflationary pressures lifted sentiment on Wednesday, July 9. Beijing pledged further policy support as a highly anticipated Politburo meeting loomed. Meanwhile, investors brushed off US President Trump’s latest tariff moves. Stronger-than-expected US labor market data and US airline projections eased concerns about a US recession.

On Friday, July 11, the Hang Seng Index rallied in early trading, with electric vehicle (EV) and tech stocks on the move.

Key upcoming Chinese trade data, tariff news, and central bank policy guidance will continue to influence sentiment. These factors may determine if the Index tests support at 24,000 or resistance at 24,500.

Hang Seng Index Climbs on Stimulus Bets

US equity markets extended their gains on July 10 as fears of a US recession abated and investors raised bets on a Fed rate cut. The Dow advanced 0.43%. Meanwhile, the Hang Seng Index rallied 1.31% to 24,343 in early trading on Friday, July 11.

Mainland China markets also added to Thursday’s gains. The CSI 300 and Shanghai Composite Index rose 0.30% and 0.21%, respectively.

EV and Tech Stocks Rally on Stimulus Hopes

Investor expectations of fresh stimulus announcements fueled demand for EV and tech stocks. Stimulus targeting the labor market and domestic consumption could offset the effect of tariffs on overseas demand. This could ease concerns about price wars and profit margins.

Tech giants Alibaba (09988) and Tencent (00700) rallied 1.94% and 1.09%, respectively, sending the Hang Seng TECH Index up 1.30%.

EV-related stocks BYD (01211) and Li Auto (02015) advanced 0.08% and 0.65%, respectively.

Beijing Pledges Stimulus to Bolster the Labor Market

On July 9, Beijing announced plans to support the labor market, aiming to boost domestic consumption. The announcement followed June’s Caixin private sector PMIs and inflation numbers. The PMI surveys revealed a continued fall in employment as waning overseas demand fueled domestic competition, impacting profit margins.

Notably, Wednesday’s announcement came ahead of an upcoming Politburo meeting, when lawmakers could roll out more measures to further bolster the economy.

US Recession Risk Slides as Labor Market Data and Airline Projections Lift Sentiment

Initial jobless claims fell from 232k (week ending June 28) to 227k (week ending July 5), suggesting a resilient US labor market. A stable labor market could bolster consumer sentiment, potentially fueling private consumption, which contributes over 60% to the US GDP.

Beyond the data, Delta Airlines forecasted third-quarter and full-year profits, topping Wall Street estimates. Thursday’s forecasts supported a more optimistic economic outlook since economists consider airline performance an economic barometer.

Technical Setup: 24,500 Resistance or 24,000 Support?

On July 11, the Hang Seng Index traded above the July congestion zone and its 50-day Exponential Moving Average (EMA), indicating bullish momentum.

A removal of US tariffs or new stimulus measures from Beijing could send the Index toward the June 25 high of 24,533. Sustained buying pressure may pave the way to the March high of 24,874. Conversely, a drop below 24,000 could bring the 50-day EMA and the 23,500 level into play.

Hang Seng Technical Outlook

• Resistance: 24,533 and then 24,874.
• Support: 24,000, then the 50-day EMA at 23,613 and 23,500.
• Short-term Bias: Bullish but hinged on trade developments, upcoming Chinese trade data, the Fed’s policy stance, and Beijing’s stimulus measures.

Hang Seng Index Forecast: Will the Index Break 24,500 or Drop Toward 24,000?

The Hang Seng Index traded above its congestion zone, and the 50-day EMA as Beijing’s stimulus pledges and easing fears of a US recession lifted sentiment.

Beijing’s focus on stabilizing the labor market could boost consumer sentiment and domestic demand. A pickup in private consumption may offset the effect of US tariffs, potentially sending the Hang Seng Index toward 25,000.

Conversely, rising trade tensions and waning overseas demand could further erode Chinese corporate profits, undermining Beijing’s measures to steady the labor market. Intensifying price wars and weaker domestic demand may drag the Index below 24,000 toward the 50-day EMA and 23,500.

What’s next for the Hang Seng? Stay informed with real-time updates as geopolitical risks and US-China developments drive sentiment. Follow our live coverage and consult our economic calendar.