Major US indices saw broad profit-taking on 5 May, ending the S&P 500’s nine-day winning streak. The S&P 500 fell 0.6%, the Nasdaq 100 -0.7%, the Dow Jones Industrial Average -0.2%, and the Russell 2000 -0.8%. Losses extended into today’s Asian session (6 May), with S&P 500 and Nasdaq 100 E-mini futures down 0.3% and 0.5%, respectively.
Market sentiment has turned cautious, with growing concerns over the medium-term economic drag from US trade tariffs. Despite ongoing negotiations, the US is expected to maintain a base 10% universal tariff alongside selective product- and country-specific duties. According to Kyodo News, US officials denied Japan’s request for full exemption from the 14% reciprocal tariff but may consider a reduction or extension of the current 90-day suspension depending on progress.
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The US dollar weakened for a second session, with the Dollar Index falling 0.3% after failing to break above its 20-day moving average (approx. 99.95). It is now hovering near 99.80 in Asian trading.
In contrast, safe haven assets rebounded. Gold (XAU/USD) surged 2.9%—its best day since 16 April—and gained another 0.8% in today’s session. The Japanese yen also strengthened, rallying 1.6% over two sessions to 143.70/USD from 145.90.
Despite a weaker China Caixin Services PMI for April (50.7 vs. 51.9 in March), the Hang Seng Index rose 0.9% to a one-month high, supported by broad US dollar weakness.
Economic data releases
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Fig 1: Key data for today’s Asian mid-session (Source: MarketPulse)
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Chart of the day – Bullish momentum remains intact for Hong Kong 33
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Fig 2: Hong Kong 33 CFD Index minor trend as of 6 May 2025 (Source: TradingView)
Since 24 April 2025, the price actions of the Hong Kong 55 CFD Index (a proxy of the Hang Seng Index futures) have managed to trade above its 20-day moving average and started to evolve within a minor ascending channel since 16 April minor swing low of 20,840 (see Fig 2).
Watch the 22,110 key short-term pivotal support to maintain its current short-term bullish momentum condition. A clearance above 22,790/22,990 (also the 50-day moving average) may see the next intermediate resistance coming in at 23,360.
On the other hand, a break below 22,110 invalidates the bullish scenario to kickstart a minor corrective decline sequence towards the intermediate support of 21,605 (also the 20-day moving average).
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