The Hang Seng Index eased on Tuesday, while oil prices held near the lowest levels in weeks. Trump insisted peace talks are underway after Tehran undermined him by saying it had no plans for direct negotiations.

The benchmark index, weighted towards internet platform and game publishing, stands to benefit substantially from the ongoing capital rotation from hardware to software.

It has repeatedly acted as the "odd one out," remaining resilient or closing higher. The turnover of over HK$300 billion highlights active institutional accumulation amid market tumult.

Alibaba unveiled its latest and “most powerful” AI model Qwen3.8-Max on Monday as Chinese companies race to close the AI gap with the US The model boasts 2.4 trillion parameters.

Alibaba’s new model performs on par with or better than Anthropic's Fable 5 in internal testing. On independent Arena.AI leaderboards, it ranks second in vision and fifth in text.

However, HSBC's record-high stock price increases the pressure to deliver earnings that sustain the rally, with investor focus locked on buyback prospects, capital returns, and future guidance, according to Bloomberg.

EBC Financial Group analyst says, the Hang Seng slammed through and cleanly broke above the 200 SMA. The rapid, upward structural march completely erased the June losses, setting it up for a retest of 26,270.

Asset Recap

As of market close on 3 August, among EBC major products, Oracle shares led gains as investors continued to reward the company’s deepened artificial intelligence partnership with Google Cloud.

Phillips 66 is scheduled to release second-quarter 2026 financial results later this week. The most likely driver for the decline was a broad pullback in refining and energy shares after crude prices fell sharply.

US stocks have kicked off August on a strong note to send the Dow to a closing record high as signs of de-escalating US-Iran tensions ‌pulled down oil prices and Treasury yields in a busy week for earnings and economic data.

A portfolio diagnostic is critical to managing tail risk. EBC Turbo leverages a proprietary scoring model to run a six-dimensional analytics scan within 5 seconds, mapping your risk-return dynamics and decoding your trading DNA.

Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.