Hang Seng Index: Markets React to China Tariffs as Services PMI Signals Weakness

Meanwhile, Australia’s ASX 200 Index climbed 0.61% on Wednesday morning, tracking Wall Street’s gains. Mining and gold-linked stocks led the gains.

Mining giants BHP Group Ltd. (BHP) and Rio Tinto Ltd. (RIO) rallied 1.69 % and 2.36%, respectively. SGX TSI Iron Ore CFR China (62% Fe Fines) Index Futures rose 0.43% on Tuesday, driving demand for mining stocks. China’s measured response to US tariffs also contributed.

Gold stocks also outperformed, with Northern Star Resources Ltd. (NST) surging by 1.77%. Gold prices hit a record high of $2,858 on February 5, adding to the previous sessions 0.98% gain.

Outlook: Risks and Opportunities Ahead

Geopolitical tensions, US-China tariff developments, and AI sector advancements are key drivers of risk sentiment. AI stocks could continue outperforming as the AI race heats up. However, trade-linked sectors, including mining and manufacturing, face volatility.

If China advances trade talks with the US and expands AI initiatives, Hong Kong, mainland China, and Australian markets could benefit. However, escalating trade tensions may overshadow AI-driven optimism, increasing market uncertainty.

Discover strategies to navigate this week’s market trends here.