Hang Seng Index Surges as Tech Stocks Soar, ASX and Nikkei Join Rally – Weekly Recap

US Markets Roar on Fed Bets and Trade Headlines

US markets posted strong gains in the week ending May 2 as US economic data fueled Fed rate cut expectations. The Nasdaq Composite Index rallied 3.42%, while the Dow and the S&P 500 advanced 3% and 2.92%, respectively.

While US economic data supported a more dovish Fed rate path, easing US-China trade tensions also improved risk sentiment. CN Wire reported:

“China’s Ministry of Commerce stated that it has noted repeated remarks by senior U.S. officials expressing a willingness to engage in tariff negotiations with China. Recently, relevant U.S. parties have also proactively conveyed messages to China, hoping to initiate talks. In response, China is conducting an assessment.“

However, corporate earnings for the MAGS were mixed. Microsoft (MSFT) and Meta Platforms (META) topped earnings, ending the week up 11.08% and 9.09%, respectively. In contrast, Apple (AAPL) fell 1.88%, while Amazon.com (AMZN) gained 0.52% after missing earnings forecasts.

China Manufacturing Sector Holds Steady Despite Tariff Pressure

Despite escalating US tariffs, China’s manufacturing sector showed resilience. The highly influential Caixin Manufacturing PMI fell to 50.4 in April, down from 51.2 in March, but remained above the 50 neutral level. Optimism over potential stimulus from Beijing helped underpin sentiment. However, a drop in overseas orders led to job cuts, raising concerns about the near-term outlook.

Hang Seng Index Rallies on Trade Optimism

The Hang Seng Index climbed 2.38% in the week ending May 2, extending its winning streak to three weeks. Easing trade tensions drove demand for Hong Kong-listed stocks, although Beijing’s silence on stimulus capped the gains. Tech led the rally, with the Hang Seng Tech Index soaring 5.24%.

• Tech giant Alibaba (09988.HK) advanced 5.54%.
• However, EV stocks, components of the Tech Index, had a mixed week. Li Auto Inc. (02015.HK) soared 8.47%, while BYD Electronic Intl. (00285.HK) fell 3.31%.

Commenting on the tech rally, Stansberry Research analyst Brian Tycangco noted:

“Two days ago, I pointed out how the Hang Seng Tech was on the verge of a bullish pattern BO. The strength was despite ongoing trade tensions, as Beijing held its ground vs the US. Since then, Washington has been sending out statements alluding to impending talks. This is now making more realize that China has the upper hand. That means deescalation on largely China’s terms that will be net positive for the global economy and equity markets in general.”

Mainland China’s equity markets fell in a shortened week. The CSI 300 dropped 0.43%, while the Shanghai Composite Index fell 0.49%. Markets were closed on Thursday and Friday, limiting the reaction to improved trade signals.

For more analysis on the Hang Seng Index and global market trends, click here.

Commodities Slide Amid Supply-Demand Shifts

• Gold ended the week down 2.38% at $3,240 as improved risk sentiment weighed on safe-haven assets.
• WTI crude oil prices tumbled 7.68% to $57.925 on fears of OPEC+ ramping up output.
• Iron ore spot prices slipped 0.21% as demand concerns lingered.

ASX 200 Mirrors Wall Street Gains

The ASX 200 extended its winning streak to three weeks, jumping 3.39% in the week ending May 2. A de-escalation in the US-China trade war and softer Australian inflation numbers boosted demand for Aussie stocks. Tech and banking stocks led the gains.

• The S&P/ASX All Technology Index rallied 5.54%.
• ANZ surged 5.27%, while economic bellwether Commonwealth Bank of Australia climbed 3%, marking a seven-week winning streak.
• Meanwhile, Northern Star Resources (NST) plunged 8.01% on falling gold prices and disappointing production numbers.

Nikkei Boosted by BoJ Pivot and Yen Weakness

The Nikkei Index gained 4.08%, driven by a Bank of Japan pivot from hawkish to cautious amid tariff concerns and a weaker Japanese Yen. Easing trade tensions also weighed on the Yen, boosting demand for Japanese stocks. The USD/JPY pair rose 0.92% to close the week at 144.953. A weaker Yen could improve the competitiveness of Japanese goods and corporate earnings.

• Softbank Group (9984) gained 2.52%.
• Nissan Motor Corp. (7201) climbed 3.4%.
• Sony Corp. (6758) rallied 5.57%.

Looking Ahead: Trade Talks, the Fed, and Key Data Releases

Investors should closely monitor central bank commentary, Beijing’s stimulus policy, and incoming economic data. Key releases include China trade data (May 9), Japan’s household spending (May 9), and the Fed’s interest rate decision (May 7). Trade developments remain a key driver for regional markets.

In a volatile landscape, staying updated on trade, policy, and central bank moves remains critical. Access deeper Hang Seng insights here.