The Hang Seng Index reversed its downward trend in Hong Kong on Thursday (February 12th), weakening by around 0.9% to around 27,000 after a strong session earlier. This decline halted the momentum of the short term rally, as investors began to reduce risk in large cap stocks. Among the index's contributors, Tencent was a major drag, with its shares falling by around 2.3%, putting pressure on the technology sector, which has recently been a driving force behind market gains. Weakness in large cap companies like this typically quickly impacts sentiment due to their significant weighting in...
Tensions between Iran and Israel have escalated again after a series of military escalations involving airstrikes and missile retaliation. Iranian President Masoud Pezeshkian formally declared the country was in "total war" against Israel and its Western allies, including the United States and European countries, following a 12-day military operation targeting Iran's nuclear facilities. This conflict has deep roots in geopolitical and ideological rivalries in the Middle East and has continued since a major escalation in mid-2025 that caused dozens of casualties and damage to critical...
Tensions between China and Taiwan have once again become a major focus of global markets, amid escalating military activity and diplomatic pressure in the Asia-Pacific region. This situation has sparked concerns about regional stability, given the potential for a conflict to involve major powers such as the United States and Japan. For financial markets, this geopolitical escalation has heightened investor caution. Riskier assets such as Asian stocks tend to be under pressure, while market volatility increases as investors reassess their risk exposure to the region. Conversely, safe-haven...
As I conclude 2025 from Beijing, I don't claim to have the ability to predict the future. Predictions often fall short when judged by accuracy. However, years as a journalist have taught me something even more valuable: knowing what truly important questions to ask. And as 2026 approaches, there are some big questions that are hard to avoid, especially as the world has just experienced a tumultuous year—tariff wars, technology restrictions, and volatile financial markets. One of the most intriguing issues comes from the relationship between the United States and China. In late November, US...
The White House has ordered U.S. military forces to focus almost entirely on enforcing a Venezuelan oil "quarantine" for at least the next two months, a U.S. official told Reuters, indicating that Washington is currently more interested in using economic rather than military means to pressure Caracas. "While the military option remains on the table, the focus is primarily on using economic pressure by enforcing sanctions to achieve the desired outcome for the White House," the official said on Wednesday, speaking on condition of anonymity. While President Donald Trump has publicly kept his...
The window dressing phenomenon is expected to again influence financial market movements throughout 2025, especially as each quarter approaches its close. This strategy is generally employed by investment managers to enhance portfolio performance in periodic reports, often encouraging the strengthening of risky assets such as stocks. However, this shift in sentiment also has different implications for hedge funds, particularly gold. Quarter One (Q1): Limited Pressure for Gold At the end of March 2025, Q1 window dressing tended to be moderate. Funds began flowing into blue-chip stocks after...