Investment 8/7/2025

The Hang Seng Index opened 87 points lower at 23,828 points, then fell 202 points to 23,713 points, and fell 28 points or 0.11% to 23,887 points throughout the day; the Technology Index rose 13 points or 0.25% to 5,229 points. The main board turnover was HK$193.7 billion.

Hong Kong stocks lack momentum, mainly because there is no good news catalyst. Although the Hang Seng Index is still under certain pressure, as long as the Sino-US trade relations do not suddenly deteriorate, the downward adjustment space is not expected to be large. It has defensive power at the 50-DMA (23,473). The upper mid-March high of 24,874 has great resistance, and the short-term range is maintained at 23,473～24,874. Investors continue to adopt the strategy of speculating in stocks rather than speculating in the market. Northbound funds focus on theme stocks, such as tea stocks, etc. The market will rise by relying on the revaluation of Chinese technology stocks, but it will have to wait for new favorable policies in the mainland.

European stock markets developed individually, with French and German stocks closing up 0.35% and 1.2%, respectively, and British stocks falling 0.19%.

The market waited and watched as Washington sent letters to various countries one after another, notifying them of the tariff rates to be paid. In addition, US President Trump warned that countries that supported the anti-US policies of the BRICS countries would be subject to an additional 10% tariff, which increased the market's risk aversion. Trump recently announced that he would impose a 25% tariff on goods from Japan, South Korea, Malaysia and Kazakhstan, a 30% tariff on South Africa, and a 40% tariff on Laos and Myanmar. All new measures will take effect on August 1.

Affected by the news, the Dow Jones Industrial Average once fell back by more than 600 points, and the three major US stock indexes all fell by more than 1%. The yen fell by more than 1%. After the Dow opened 25 points lower, the decline widened to a maximum of 668 points, hitting a low of 44,160 points; the S&P 500 once fell 1.25%; the Nasdaq, which is dominated by technology stocks, fell 1.35%.

At the close of the U.S. stock market, the Dow Jones Industrial Average fell 422 points, or 0.94%, to 44,406 points; the S&P 500 fell 49 points, or 0.79%, to 6,229 points; and the Nasdaq fell 188 points, or 0.92%, to 20,412 points.

The U.S. dollar index rose 0.5% at one point, reaching a high of 97.67; the Japanese yen fell 1.22% to a low of 146.24 per dollar; the euro fell 0.79% to $1.1688.