Hang Seng Index Surges as Tech, EV Stocks React to Trade Optimism

However, Apple (AAPL) and Amazon.com (AMZN) fell 3.78% and 3.21%, respectively, in after-hours trading after earnings misses, potentially impacting Asian tech stocks on Friday, May 2. Despite weakness in select megacaps, broader optimism held on rate cut hopes.

US Jobless Claims Spike as Recession Fears Mount

Initial jobless claims jumped from 223k (week ending April 19) to 241k (week ending April 26). A weaker labor market may slow wage growth, potentially softening consumer spending and dampening inflationary pressures, signaling a more dovish Fed stance.

The ISM Manufacturing PMI fell from 49 in March to 48.7 in April, remaining below the crucial 50 neutral level and reinforcing rate cut expectations.

Thursday’s data increased the chances of a US economic recession. According to Polymarket, the probability of a 2025 US recession jumped to 66%, up from 27% on Trump’s Inauguration Day and matching the April 7 high.

Trade Developments: Beijing Considers Tariff Talks

On Friday, May 2, speculation intensified about potential US-China trade talks. CN Wire reported:

“China’s Ministry of Commerce stated that it has noted repeated remarks by senior U.S. officials expressing a willingness to engage in tariff negotiations with China. Recently, relevant U.S. parties have also proactively conveyed messages to China, hoping to initiate talks. In response, China is conducting an assessment.”