Investment 18/5/2026

The meeting between the Chinese and US leaders failed to provide a positive stimulus to the stock market. Major Asia-Pacific stock markets were under pressure, and Hong Kong stocks opened 2 points higher but then declined, finally closing at 25,962 points, down 426 points or 1.6%, ending a two-day winning streak. Turnover reached HK$325.3 billion, exceeding HK$300 billion for the second consecutive day. The Hang Seng Tech Index closed at 4,941 points, down 135 points or 2.7%, marking its second consecutive day of decline.

For the week, the Hang Seng Index fell 430 points or 1.6%; the Hang Seng Tech Index fell 161 points or 3.2%.

The performance of Hong Kong stocks disappointed investors. The afternoon plunge may have been due to a correction in US stocks, prompting large investors to attempt a counterattack. Meanwhile, A-shares were already undergoing a correction, leading to selling by both domestic and foreign investors, further weakening Hong Kong stocks. Therefore, the stock market decline is believed to be unrelated to concerns about the economy or corporate profits, but rather reflects a cooling of market expectations for the Xi-Trump meeting, with focus shifting to other areas such as the US-Iran war. Furthermore, recently released US economic data reflects rising inflation due to the Iraq War, reducing the likelihood of a US interest rate cut this year. This raises concerns that US stocks may undergo a short-to-medium-term correction, limiting the upside potential of Hong Kong stocks. The Hang Seng Index faces significant resistance at its February 10 high of 27,397 points, and will likely continue to be under pressure in the short term, potentially testing the 250-day moving average (25,586), a key level separating bull and bear markets.

European stock markets closed lower across the board, with the UK, French, and German markets falling 1.71%, 1.61%, and 2.07% respectively.

A sharp rise in global bond yields triggered a significant correction in US stocks on Friday, with all three major indices falling by more than 1%. The Dow Jones Industrial Average fell by over 500 points, with semiconductor stocks experiencing the heaviest selling pressure. The Dow Jones Industrial Average opened 133 points lower and then extended its losses to a maximum of 559 points, reaching a low of 49,503. The S&P 500 fell as much as 1.38%, and the Nasdaq Composite dropped as much as 2.02%.

At the close of trading, the Dow Jones Industrial Average fell 537 points, or 1.07%, to 49,526; the S&P 500 dropped 92 points, or 1.24%, to 1.54%, to 26,225. For the week as a whole, the Dow Jones Industrial Average fell slightly by 0.2%, the S&P 500 rose by 0.1%, and the Nasdaq Composite retreated by 0.1%.

The US dollar index rose as much as 0.51% to 99.32, the euro fell 0.45% to $1.1617, and the yen fell 0.3% to 158.85 per dollar. Bitcoin plunged as much as 3.7% to $78,635.