FX.co ★ Hong Kong Stocks Poised for Steep Weekly Losses

Hong Kong's stock market experienced a decline of 249 points, or 0.9%, falling to 26,501 in early trading on Friday. This marks the fifth consecutive day of losses and the lowest level in almost two weeks. Investors' sentiment was impacted after Wall Street retreated from its record highs overnight. This shift came as traders evaluated statements from Federal Reserve officials concerning interest rates and anticipated the start of the U.S. earnings season. Additionally, there was increased caution ahead of significant Chinese economic data releases next week, including September's trade figures, consumer price index (CPI) and producer price index (PPI) readings, as well as credit statistics. Most sectors saw declines, with the technology sector leading the way after China expanded its export controls on rare earth elements for technological and military applications. Financial stocks also decreased, with a notable move by HSBC Holdings to initiate a $13.6 billion buyout of minority shareholders in its majority-owned Hang Seng Bank. Prominent companies that suffered losses included SMIC, dropping 4.2%, Baidu with a 3.4% decrease, Alibaba down by 3.0%, and Shenzhou International falling 2.5%. However, the losses were somewhat mitigated by a positive sentiment in mainland stocks, which resumed trading on Thursday following a week-long break. Despite the past week's strong gains, Hong Kong is on track to finish this week with marked declines.