China Intervenes to Tame Yuan Rally as AI Fears Roil Hong Kong Markets

Market Volatility and Currency Intervention - The People's Bank of China (PBOC) has reduced shorting costs to halt the Yuan's recent rally, which reached its strongest levels since mid-2023, potentially threatening the export-led recovery [2] - Analysts believe Beijing is trying to create a "slow bull" market to avoid historical boom-bust cycles in Chinese equities [2] Regional Performance and Record Highs - The Hang Seng Index (HSI) is facing its steepest monthly decline since October, down 3.2% in February, driven by concerns over AI disruption affecting traditional sectors [3][9] - Malaysia's FBM KLCI index fell over 1% to 1,722.34 points, its lowest since late January, but remains nearly 10% higher than a year ago due to growth in financial services and utilities [4] - Hyundai Motor (HYMTF) shares surged over 6% to a record high, driven by a 60 trillion won proposal for hydrogen fuel cell infrastructure in Canada and optimism surrounding its robotics division [5][9] Geopolitics and Domestic Policy - Russia has warned Britain against deploying troops to Ukraine, stating it could lead to a large-scale military confrontation [6] - A meeting between President Trump and New York City Mayor Zohran Mamdani focused on a proposal for 12,000 housing units at Sunnyside Yards, indicating potential federal-local cooperation on urban development [7] Commodities and Corporate Trends - Copper prices are rising, supported by positive global demand and industrial growth prospects, as Chinese firms seek foreign expertise for global expansion [10]