FX.co ★ Hong Kong Stocks Trade Lower

Hong Kong's stock market experienced a downturn on Tuesday morning, with shares declining by 98 points, or 0.4%, to settle around 26,349. This dip followed moderate gains in the previous session, primarily influenced by weaknesses in the property and financial sectors. Investors remained cautious as they assessed the news regarding an arrangement for moving TikTok under U.S. ownership, a deal awaiting final approval expected to occur during a conversation between President Trump and President Xi Jinping scheduled for Friday. Concurrently, Beijing reacted strongly against a U.S. initiative that appeals to its allies, including the EU and G7, to implement tariffs ranging from 50% to 100% on Chinese imports. However, the negative impact was somewhat offset by new data demonstrating a 0.9% year-on-year increase in Hong Kong’s manufacturing output in the second quarter, marking growth for the third consecutive quarter. Attention now shifts to the Federal Reserve’s two-day policy meeting, where a 25 basis point interest rate cut is anticipated, with further easing expected this year amid ongoing pressure from President Trump for more substantial measures. The shares of Yunfeng Financial plummeted by 15% following a discounted share offering. Other significant decliners included China Hongqiao Group, down by 4.1%, JD Health International, which fell by 2.9%, China Overseas Land, decreasing by 2.4%, and Horizon Robotics, which went down by 1.8%.