The Hang Seng edged up 59 points, or 0.2%, to end at 26,835 on Tuesday, attempting to stabilize after steep losses in the prior two sessions. Sentiment improved as U.S. stock futures rose modestly, supported by a surge in U.S. factory activity for January that eased recent jitters. A rebound in mainland equities also lent support, with investors largely shrugging off China’s move to raise VAT on telecom services to 9% from 6%. Property and financials led gains after a private survey showed China’s factory activity growing the most in three months in January, contrasting with official data pointing to contraction ahead of the Spring Festival. CSPC Pharma surged 8.2% after approval of a hypertension drug, while Zijin Gold International (7.3%), Zhaojin Mining (3.4%), and Chow Tai Fook (1.5%) advanced as precious metals rebounded. Investors now await Hong Kong’s December retail sales data later today, after November posted the slowest growth in three months.
