FX.co ★ Hang Seng Ends Steady After Early Advance

On Monday, the Hang Seng Index closed nearly unchanged at 26,347, having initially risen but ultimately lost momentum as traders capitalized on profits following the index's ascent to a six-week high last Friday. This upsurge was fueled by optimism surrounding China's tech industry. However, investor sentiment became wary when a private survey revealed a slowdown in China's services sector, which posted its smallest growth in six months in December. Despite a rally in mainland stocks on their inaugural trading day of 2026, investors remained largely indifferent. Attention has now turned to China's December CPI and PPI figures set to be released, especially after the annual inflation rate for November reached a 21-month peak of 0.7%, with core inflation maintaining a 20-month high of 1.2%. Moreover, producer prices witnessed a sharper than anticipated fall, marking a consecutive 38-month decline. On the global stage, geopolitical tensions rose following U.S. military activities in Venezuela over the weekend. Within Hong Kong's markets, all industry sectors exhibited relative passivity. Notable gains in Kuaishou Tech (11.0%), China Resources Land (5.0%), and SMIC (1.6%) were almost balanced out by losses in Xiaomi (-2.7%), China Hongqiao (-2.4%), and Zijin Mining (-2.2%).