FX.co ★ Hang Seng Closes Notably Lower But Marks Weekly Rise

The Hang Seng index declined by 244 points, or 0.9%, closing at 26,242 on Friday. This drop counters a 2% increase in the preceding session and was influenced by weak trade data emerging from China. Specifically, exports in October decreased by 1.1% year-over-year, marking the first decline since February. This reduction has been attributed to high base effects and a slowdown in foreign demand due to extensive preemptive ordering. On the import front, there was a modest increase of 1.0%, the slowest in five months, reflecting tepid domestic demand. Market caution also intensified in anticipation of China's upcoming CPI and PPI data over the weekend, amid ongoing deflationary concerns. Most sectors experienced declines, with technology stocks leading the fall as skepticism grew regarding the sustainability of recent gains fueled by AI advancements. Additionally, consumer shares suffered due to uncertainty surrounding further policy support from Beijing. Notably, Pop Mart International fell by 6.4%, followed by Kuaishou Technology with a 6.2% decline, Innovent Biologics shedding 3.5%, and Chow Tai Fook dropping 2.4%. Despite the day's setbacks, the index achieved a 1.3% increase over the week, recovering from the previous week's losses. This uptrend was supported by robust foreign investments in mainland Chinese stocks during the third quarter and optimism surrounding improved U.S.-China relations following a prolonged trade ceasefire.