FinancialfocusHub.com
  • Home
  • Crude Oil
  • Cryptocurrency
  • Forex
  • Funds
  • Gold
  • Insurance
  • News
  • Stocks
No Result
View All Result
  • Home
  • Crude Oil
  • Cryptocurrency
  • Forex
  • Funds
  • Gold
  • Insurance
  • News
  • Stocks
No Result
View All Result
FinancialfocusHub.com
No Result
View All Result
ADVERTISEMENT

Hong Kong, Asian Stocks Drop as US Pressures China: Markets Wrap

Alice by Alice
2025-02-25
in News
Stocks30

Stocks30

ADVERTISEMENT

Asian stocks faced declines after President Donald Trump’s actions to limit Chinese investments and proceed with tariffs on Canada and Mexico caused investors to scale back on risky bets. This negative sentiment was compounded by a drop in U.S. stocks at the end of trading.

Chinese and Hong Kong Stocks Hit Hard

Equity indexes in Hong Kong and mainland China fell at the opening, and a regional gauge of shares dropped for the second consecutive day. In early Asian trading, the yield on 10-year Treasuries slid by two basis points to 4.4%, while gold prices surged to a record high as investors sought safe-haven assets.

ADVERTISEMENT

Trump’s Directive to Curb Chinese Investment

The market turmoil followed Trump’s national security presidential memorandum, which orders a key government committee to restrict Chinese investments in U.S. tech, energy, and other strategic sectors. This has the potential to reverse a recent rally in Chinese technology stocks, which had been boosted by optimism surrounding DeepSeek and President Xi Jinping’s meetings with corporate leaders, including Alibaba’s Jack Ma.

ADVERTISEMENT

Trump’s plan aims to use “all necessary legal instruments” to prevent Chinese affiliates from investing in critical U.S. industries such as technology, healthcare, agriculture, energy, and raw materials. The directive will likely lead to the more aggressive use of the Committee on Foreign Investment in the United States (CFIUS), which reviews foreign acquisitions of U.S. companies.

ADVERTISEMENT

Chinese Shares and Alibaba Hit Hard

As a result of Trump’s memorandum, Chinese shares in Hong Kong fell 2.8%, with Alibaba Group Holding Ltd. seeing a sharp 7.9% drop in Hong Kong trading. The company’s American depositary receipts also plummeted 10%, marking its steepest decline since October 2022.

Japanese Stocks Rally

In contrast, Japanese stocks saw gains. Trading houses, including Mitsubishi Corp. and Marubeni Corp., rallied after Berkshire Hathaway Inc. indicated it was looking to increase its stake in these companies, as revealed in its annual letter to shareholders on Saturday.

South Korea’s Rate Cut and Market Reactions

Elsewhere in Asia, the Bank of Korea cut its seven-day repurchase rate by 0.25 percentage points to 2.75% on Tuesday, a widely anticipated move.

US Market Sentiment

In the U.S., markets showed mixed performance. The S&P 500 dropped by 0.5%, while the Nasdaq 100 lost over 1%, and the Dow Jones Industrial Average wavered. Notably, hedge funds reduced their net exposure to the “Magnificent Seven” stocks, and Nvidia Corp. lost 3.1% ahead of its earnings report.

This shift toward volatility suggests that investors expect market turbulence in the coming weeks. Nvidia’s earnings report on Wednesday could serve as a catalyst for further market moves, and if the company delivers strong results, it may provide upward momentum for stocks.

Broader Market Outlook

Despite the recent sell-off, analysts believe the broader macroeconomic backdrop remains strong. “The market is churning sideways, driven by investor confusion and seasonal weakness in February. However, robust earnings and healthy fund flows argue for a breakout to the upside once momentum returns,” said Mark Hackett at Nationwide.

Geopolitical Uncertainties Affect Oil and Gold

In other markets, oil prices edged higher amidst geopolitical uncertainties, including peace talks between Russia and Ukraine and potential changes in Iraqi crude production. Meanwhile, gold held near its latest record high as exchange-traded funds backed by the precious metal drew increased interest from investors.

Related topics:

  • How Much Money Do You Need to Trade Forex?
  • How Many USD Are in Circulation?
  • What is the Rate of USD to ZAR?
ADVERTISEMENT
Previous Post

Stock Market Today: Dow, S&P 500, Nasdaq Futures Waver as Trump Tariffs Loom

Next Post

What is the Grace Period for State Farm Auto Insurance?

Alice

Alice

Related Posts

Capital Returns To Us-Listed Chinese Etfs After Sell-Off
News

Capital Returns To Us-Listed Chinese Etfs After Sell-Off

2025-05-16
Trump: UAE, US Agree On Abu Dhabi Buying Advanced AI Chips
News

Trump: UAE, US Agree On Abu Dhabi Buying Advanced AI Chips

2025-05-16
Policy Interpretation | Seven Departments Unveil Comprehensive Measures to Accelerate Sci-Tech Finance System Development
News

Policy Interpretation | Seven Departments Unveil Comprehensive Measures to Accelerate Sci-Tech Finance System Development

2025-05-15
China Expands “Swap Connect” with 30-Year Swaps and LPR Products to Deepen Financial Market Opening
News

China Expands “Swap Connect” with 30-Year Swaps and LPR Products to Deepen Financial Market Opening

2025-05-15
Gold Drops 2% to Below $3200 an Ounce
Gold

Gold Drops 2% to Below $3200 an Ounce

2025-05-15
Small AI Firm Bets $300 Million On Bitcoin And Trumpcoin
News

Small AI Firm Bets $300 Million On Bitcoin And Trumpcoin

2025-05-15
Tariffs Cause ‘lost Year’ For Housing Market, Economist Says
News

Tariffs Cause ‘lost Year’ For Housing Market, Economist Says

2025-05-15
China’s Inclusive Finance: Powering Innovation in the New Quality Productive Forces
News

China’s Inclusive Finance: Powering Innovation in the New Quality Productive Forces

2025-05-14
RMB Strengthens as China-U.S. Trade Tensions Ease
News

RMB Strengthens as China-U.S. Trade Tensions Ease

2025-05-14
Next Post
Insurance

What is the Grace Period for State Farm Auto Insurance?

Insurance4

How Does State Farm Universal Life Insurance Work?

Insurance

How Does State Farm Life Insurance Work?

Popular Articles

U.S. Tariff Uncertainty Weighs On Infineon’s Revenue Outlook
News

U.S. Tariff Uncertainty Weighs On Infineon’s Revenue Outlook

by Alice
2025-05-10

German chipmaker Infineon Technologies on Thursday reported steady orders but cut its full-year revenue outlook due to uncertainty over the...

UK Economy Poised For Rapid Growth Despite Tax And Tariffs

UK Economy Poised For Rapid Growth Despite Tax And Tariffs

2025-05-15
Dell Price Rises Alongside Secondary Downward Trend Line

Dell Price Rises Alongside Secondary Downward Trend Line

2025-05-10
China Unveils Landmark Insurance Standards for 300 Million Seniors

China Unveils Landmark Insurance Standards for 300 Million Seniors

2025-05-14
Policy Interpretation | Seven Departments Unveil Comprehensive Measures to Accelerate Sci-Tech Finance System Development

Policy Interpretation | Seven Departments Unveil Comprehensive Measures to Accelerate Sci-Tech Finance System Development

2025-05-15
Insurance

What Is Long-Term Disability Insurance? A Comprehensive Guide

2025-05-16
Forex1

What Is A Prop Firm Forex: How Does It Work?

2025-05-12
GOP Rep. Lucas Backs Fed Chair Powell: ‘Excellent Job’

GOP Rep. Lucas Backs Fed Chair Powell: ‘Excellent Job’

2025-05-14

Recent Posts

Capital Returns To Us-Listed Chinese Etfs After Sell-Off
News

Capital Returns To Us-Listed Chinese Etfs After Sell-Off

by Alice
2025-05-16

Major U.S.-listed exchange-traded funds (ETFs) tracking Chinese equities experienced significant inflows in May, rebounding from a sharp sell-off in April....

Trump: UAE, US Agree On Abu Dhabi Buying Advanced AI Chips

Trump: UAE, US Agree On Abu Dhabi Buying Advanced AI Chips

2025-05-16
Crude Oil3

Oil Prices Fall Amid Iran-U.S. Nuclear Deal Uncertainty

2025-05-16
Japan Economy Shrinks Amid Trump Trade War Impact

Japan Economy Shrinks Amid Trump Trade War Impact

2025-05-16
What Is the Penalty for Not Having Health Insurance in Michigan?

What Is the Penalty for Not Having Health Insurance in Michigan?

2025-05-16
How Long Can You Go Without Car Insurance Before Being Penalized in Connecticut?

How Long Can You Go Without Car Insurance Before Being Penalized in Connecticut?

2025-05-16
How Much Is an Er Visit in California with Insurance?

How Much Is an Er Visit in California with Insurance?

2025-05-16
Ford Price Confirms Breach of Important Resistance

Ford Price Confirms Breach of Important Resistance

2025-05-16

Cryptocurrency

Cryptocurrency27

NFT Marketplace X2Y2 to Shut Down After Three Years as Trading Volume Plummets

2025-04-04
Cryptocurrency

Elon Musk Denies U.S. Government Plans to Use Dogecoin, Cryptocurrency Drops 3%

2025-04-01
Cryptocurrency

Gold Bull Peter Schiff Bets on Bullish Gold Amid Bitcoin’s Struggles

2025-03-30
Cryptocurrency

Fidelity Plans to Launch Spot Solana ETF

2025-03-29
Cryptocurrency

BlackRock Launches Bitcoin ETP in Europe: A Key Step for Institutional Adoption

2025-03-28
Cryptocurrency

Closing Bell Movers: GameStop Gains 7% on Earnings, Bitcoin Announcement

2025-03-27
FinancialfocusHub.com

FinancialFocusHub.com is your gateway to insightful financial guidance and strategies. Explore expert advice on investing, saving, and managing wealth. Stay informed with the latest trends and tools to empower your financial journey.

Recent Posts

  • Capital Returns To Us-Listed Chinese Etfs After Sell-Off 2025-05-16
  • Trump: UAE, US Agree On Abu Dhabi Buying Advanced AI Chips 2025-05-16
  • Oil Prices Fall Amid Iran-U.S. Nuclear Deal Uncertainty 2025-05-16
  • Japan Economy Shrinks Amid Trump Trade War Impact 2025-05-16
  • What Is the Penalty for Not Having Health Insurance in Michigan? 2025-05-16

TAGS

Useful Links

ABOUT US

Disclaimer

Privacy Policy

Copyright © 2024 financialfocushub.com

No Result
View All Result
  • Home
  • Forex
  • Insurance
  • News
  • Stocks

Copyright © 2024 FinancialFocusHub.com is your gateway to insightful financial guidance and strategies. Explore expert advice on investing, saving, and managing wealth. Stay informed with the latest trends and tools to empower your financial journey.