FX.co ★ Hong Kong Shares Extend Drops to Begin the Week

Stocks in Hong Kong experienced a decline of 195 points, or 0.7%, settling at 26,377 during Monday morning trades. This marked the second consecutive session of losses and the lowest level seen in a week, amidst overall sectoral weakness. Investor sentiment remained muted following lackluster activity data from China in October, which indicated the slowest growth in 14 months for both industrial output and retail sales. Additionally, market participants exercised caution ahead of the monthly loan prime rate announcements in mainland China, expected later this week, subsequent to the People's Bank of China's decision to maintain rates at historic lows for the fifth consecutive month in October. Nonetheless, moderate gains in U.S. futures helped limit the declines, as markets brace for crucial data following the conclusion of the longest U.S. government shutdown in history last week. On the local front, Hong Kong's GDP growth for the third quarter remained close to a two-week high, buoyed by strong exports and robust domestic demand. Major underperformers included Trip.com (-4.8%), Lenovo Group (-3.0%), H World Group (-1.9%), Haidilao International (-1.2%), and Cathay Pacific (-1.0%).