Hang Seng Market Down 1.25% Amid Trade Tensions
23 May 2023
Hong Kong Market closes 1.25 percent
Hong Kong’s share market finished the session lower on Tuesday, 23 May as market participants remained worried about China`s slowing economic recovery and fears of a resurgence in Sino US Trade tensions after China banned US chip maker Micron from selling its products to Chinese Companies working on key infrastructure projects.
Meanwhile, uncertainty around the debt ceiling talks and the Federal Reserve outlook also weigh down sentiments.
At the closing bell, the benchmark Hang Seng index dropped 246.92 Points, or 1.25%, to 1941.25.
China has banned some sales of Micron products after launching a probe into the American memory chip giant for cybersecurity risks in early April.
This decision is widely a part of the tit-for-tat in the ongoing U.S.- China economic competition, which was started to upend a deeply intertwined global tech supply chain.
Pharmaceuticals stocks surged as Chinese health authorities said more vaccines are on the way to curb Covid-19 waves.
HANG SENG TECHNICAL ANALYSIS DAILY CHART:
- Hang Seng is currently trading in the down channel.
- Hang Seng is currently trading below all SMA.
- RSI is in buying zone which suggests bullishness and Stochastic is suggesting a downtrend.
- Immediate resistance is at 19588 & its immediate support level is 19353
HOW TO TRADE HANG SENG IN THIS WEEK
Hang Seng is in a downtrend and following a lower low structure; currently, the price is trading at a crucial support level, and if it breaks through it, more decline in Hang Seng is expected.