FX.co ★ Hong Kong Market Falls on China PMI Concerns

On Wednesday morning, Hong Kong's stock market experienced a decline, with shares dropping by 72 points, or 0.3%, to 21,934. This downturn reversed the modest gains observed in the previous trading session. Investor sentiment was influenced by China's April Purchasing Managers' Index (PMI) data. Official statistics revealed that factory activity experienced its most significant contraction in 16 months, driven by growing concerns over the impact of increased U.S. tariffs. In contrast, a private survey suggested an unexpected rise in manufacturing activity, albeit at the slowest rate since January. Additionally, growth in the services sector weakened, with performance figures falling short of expectations. The overall market mood was further affected by a decline in U.S. futures, as traders exercised caution ahead of significant U.S. economic announcements, including the March Personal Consumption Expenditures (PCE) price index—regarded as the Federal Reserve's favored measure of inflation—and the preliminary estimate of the first quarter's GDP. The financial sector was among the hardest hit, despite some gains in technology, real estate, and consumer stocks. Early notable decliners included ZTO Express, down 2.7%; Pop Mart International, down 2.0%; Meituan, falling 1.9%; and Haidilao International, dropping 1.5%.