FX.co ★ Hong Kong Shares Rise But Weekly Loss Looms

Hong Kong stocks experienced a rise of 165 points, or 0.7%, reaching 23,399 during Friday's morning trading session, as the market rebounded from a three-week low. This upward movement broke a three-day losing streak, with gains observed across various sectors. The recovery was largely influenced by the People's Bank of China maintaining its key lending rates, a move anticipated following record rate cuts in May aimed at bolstering the economy and counterbalancing the effects of increased U.S. tariffs. Market sentiment was further buoyed by expectations that China's top legislative body might propose new stimulus measures in its early July meetings. Nevertheless, for the week, the Hang Seng Index appears set for its first decline in three weeks, having fallen approximately 2% due to growing apprehensions regarding potential U.S. involvement in the Israel-Iran conflict. Simultaneously, the Federal Reserve highlighted that inflation concerns persist as "meaningful," indicating a cautious approach towards rate cuts planned for 2026, yet still leaving room for two additional cuts this year. Leading gains in early trading were Sunny Optical Tech at 3.7%, Laopu Old at 2.5%, Chow Tai Fook at 1.8%, and SMIC at 1.7%.