FX.co ★ Hong Kong Stocks Fall Slightly

In early trading on Thursday, shares in Hong Kong dipped by 74 points, equivalent to a 0.3% decrease, closing at 26,514. This decline reversed the gains from the previous session, with widespread downturns across most sectors. Market sentiment became cautious as investors awaited the release of December's inflation figures for the city, expected later today. In November, the headline inflation rate remained unchanged at 1.2%, while underlying inflation also held steady at 1%. Investors were also looking forward to Hong Kong's business sentiment reading for the first quarter, especially after it reached a five-quarter peak in the second quarter. Despite the decline, losses were limited by an overnight surge on Wall Street. This rally followed U.S. President Trump's decision to retract tariff threats and his assurance that force would not be used to annex Greenland from an ally, thus alleviating some geopolitical tensions. In China, stocks continued to rise after Bridgewater Associates reiterated its favorable outlook on mainland equities, citing improved corporate profit projections and supportive policy indications. Among the notable decliners on the Hang Seng Index were Zhaojin Mining, which fell by 4.2%, Zijin Gold International with a 2.4% drop, Minimax Group down by 2.3%, and Xiaomi Corporation declining by 1.1%.