FX.co ★ Hong Kong Shares Poised for Steep Weekly Loss

Hong Kong's stock market experienced a notable decline of 229 points, or nearly 1%, settling at 23,840 during Friday morning trading. This downturn extended the losses seen in the previous session, as downturns permeated all sectors. Investor sentiment remained delicate as the expiration of the 90-day trade truce on July 9 loomed, with additional concerns building ahead of significant Chinese economic data releases expected next week, such as the Consumer Price Index (CPI) and Producer Price Index (PPI), amidst ongoing deflation risks. On a local level, private sector activity in Hong Kong contracted at the fastest rate in over three years. Indicators such as output, new orders, and overseas sales—including those to mainland China—experienced declines. However, losses were somewhat mitigated by rising optimism that the forthcoming meeting of China's Politburo might introduce new support measures to counterbalance the increasing pressure of substantial U.S. tariffs. Key decliners included AIA Group, which fell by 4.0%, Sunny Optical Technology down 3.5%, Techtronic Industries decreasing by 2.4%, and China Feihe dropping 2.4%. For the week, the markets are poised for a significant weekly downturn, having already decreased by nearly 2%, following a strong performance in the preceding period.