Hong Kong's stock market experienced a downturn on Monday, with the index falling by 107 points, equivalent to a 0.5% decrease, closing at 23,804 during early trading. This marks the third consecutive session of losses, largely due to ongoing uncertainties regarding tariffs amid global trade negotiations with the United States. Concurrently, U.S. futures saw a significant decline, even after President Trump clarified that the new tariffs would be implemented on August 1, alleviating fears of an earlier start date on July 9.
In China, attention turns to the release of June's Consumer Price Index (CPI) and Producer Price Index (PPI) data later this week, following a continued decline in consumer prices for the fourth month in May and a substantial drop in producer prices, the most significant in nearly two years, intensifying concerns about deflation. However, potential stimulus measures from China's upcoming Politburo meeting provided some relief against further losses.
The consumer sector was the hardest hit, largely due to Beijing's imposition of five-year tariffs of up to 34.9% on European brandy, heightening tensions with U.S. allies. The financial and technology sectors also experienced declines, with notable decreases in companies such as Meituan (-3.2%), China Hongqiao (-3.0%), Horizon Robotics (-2.6%), and Innovent Biologics (-2.3%).
