Investment 14/10/2025

The Hang Seng Index opened 656 points lower at 25,634, then fell as much as 954 points, hitting a low of 25,336. The decline subsequently narrowed, ending the day down 400 points, or 1.52%, at 25,889, marking its sixth consecutive day of decline. The Tech Index fell 114 points, or 1.82%, to 6,145. Main board trading volume increased to HK$490.3 billion.


The Hang Seng Index regained its 50-DMA (25,803), suggesting strong support at this level. Trading volume exceeding HK$300 billion per period has become commonplace in Hong Kong stocks recently. With ample capital injections, the market outlook is not expected to be weak. The Hang Seng Index is expected to re-enter 26,000 points today.


US President Trump threatened to impose 100% tariffs on China starting next month. Although he subsequently reassured the market via social media, further negative news cannot be ruled out. Hong Kong stocks have already entered a correction phase, and coupled with the sharp deterioration in Sino-US relations, significant market volatility is inevitable. Morgan Stanley warned that if the two countries fail to resolve their differences, US stocks could see a correction of up to 11%.


European stock markets reversed course, with German stocks performing particularly well, closing up 0.6%, while UK and French stocks rose 0.16% and 0.21%. Japanese stocks were closed for a holiday, while South Korean and Taiwanese stock markets followed Friday's decline, closing down 0.72% and 1.39%, respectively.


US President Trump downplayed the latest trade war with China, stating that the White House is open to further negotiations. US stocks stabilized on Monday. The Dow Jones Industrial Average opened 218 points higher and then extended its gains to as much as 673 points, reaching a high of 46,153, recouping approximately 70% of Friday's losses. The S&P 500 rose as much as 1.77%, while the tech-heavy Nasdaq Composite Index surged 2.32%.


At the close of U.S. markets, the Dow Jones Industrial Average still rose 587 points, or 1.29%, to 46,067; the S&P 500 rose 102 points, or 1.56%, to 6,654; and the Nasdaq Composite jumped 490 points, or 2.21%, to 22,694.


Monday was Columbus Day, and the U.S. Treasury market was closed. The U.S. dollar index rose as much as 0.37% to 99.35, while the euro fell 0.53% to $1.1559 and the yen retreated 0.83% to 152.44 per dollar. Bitcoin, after rebounding over 4% on Sunday, fluctuated on Monday, rising 1.85% to $115,975.

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