Hang Seng Index: Tech, Property Stocks Weigh as Trade Jitters Linger

US Markets Mixed As Investors Await Fresh Catalysts

Wall Street wavered midweek, caught between fading optimism over US-China trade talks and renewed policy uncertainty.

The Nasdaq Composite Index and the S&P 500 advanced 0.72% and 0.10%, respectively. Tech stocks remained in high demand after new AI-related deals in the Middle East. Nevertheless, the gains were modest as investors awaited fresh trade signals from Washington.

Meanwhile, the Dow dropped 0.21%, weighed by drug firms Merck & Co. (MRK) and Amgen (AMGN), which fell on Trump’s focus on drug price cuts.

The cautious tone from the US session carried over into the Asian trading hours on Thursday, May 15.

Hang Seng Index Slips Amid Trade Uncertainty

Asian equity markets had a mixed morning session on Thursday, May 15. The Hang Seng Index slipped 0.24%, weighed by trade uncertainty and key earnings releases.

• The Hang Seng Tech Index fell 0.60%, while the Hang Seng Mainland Properties Index dropped 0.49%.
• Tencent (00700) fell 0.48% after earnings missed projections, while Alibaba (9988) declined 0.38% ahead of its May 15 earnings call.
• Meanwhile, auto stocks had a mixed morning. Li Auto (02015.HK) and BYD Company Ltd. (01211) advanced 0.71% and 3.33%, respectively, while Nio Inc. (9866) fell 1.55%.

Concerns about US-China trade negotiations and the impact of tariffs on China’s economy led investors to take profits. Mainland China’s equity markets also retreated, with the CSI 300 and Shanghai Composite falling 0.60% and 0.42%, respectively.

Nikkei 225 Drops as Yen Gains Momentum

Japan’s Nikkei 225 slid 1.20% on Thursday morning, as the Japanese Yen continued strengthening against the US dollar. The USD/JPY pair dropped 0.45% to 146.089, extending its losses from May 14. A stronger Japanese Yen threatens export competitiveness and could weigh on corporate earnings.

Nissan Motor (7201) and Sony Corp. (6758) tumbled 3.75% and 2.93%, respectively. Tech stocks also struggled, with Softbank Group (9984) down 0.81%.

ASX 200 Bucks the Trend on RBA Rate Cut Bets

In contrast, Australia’s ASX 200 bucked the broader market trend, rising 0.15%. Banking and tech stocks contributed to the morning gains, offsetting losses across mining, gold, and oil-related stocks.

Commonwealth Bank of Australia advanced 0.63%, while ANZ (ANZ) and National Australia Bank (NAB) rose 1.02% and 1%, respectively.

Australia’s unemployment rate remained unchanged at 4.1% in April despite a 59.5k jump in full employment, reflecting a tight labor market. Still, the data failed to curb expectations of multiple RBA rate cuts. Shane Oliver, Head of Investment Strategy and Chief Economist at AMP, remarked:

“The overall money market post the jobs data has priced in a 96% probability of a 0.25% RBA rate cut on Tuesday with three 0.25% rate cuts priced in by year end.”

Outlook: Watching Trade and Beijing Stimulus

Markets remain highly sensitive to US-China trade developments. Progress toward a trade deal may lift risk sentiment and ease flows into safe-haven assets, while setbacks could trigger renewed risk aversion.

Investors are also eyeing Beijing for potential stimulus measures. Any new announcements may cushion the impact of tariffs and support demand for Hong Kong and Mainland-listed stocks.

Traders should remain alert and responsive to headlines on trade and central bank signals.

Stay ahead of the headlines here—follow our live market coverage on US-China trade talks.