FX.co ★ Hong Kong Stocks Fall But Head for Slight Weekly Gains

In Friday's morning trading, Hong Kong shares declined by 202 points, or 0.8%, settling at 23,831. This marked the second consecutive session of losses fueled by mounting geopolitical tensions in the Middle East. Reports indicated that Israel conducted a strike on Iran early Friday, while efforts by the United States to rejuvenate a stalled nuclear agreement with Tehran remain unsuccessful. Market sentiment was further weakened by former President Trump's suggestion of increasing tariffs on automobiles to boost domestic investment, negatively impacting U.S. stock futures. The Hang Seng index retreated from its near three-month peak, influenced by worries over an intensifying pricing competition among Chinese automakers. The auto sector experienced significant declines, with Geely Auto dropping 2.0% and Li Auto decreasing by 1.3%. Other notable decliners included Prada SpA, which fell 4.5%, Sino Biopharma down 4.4%, and Sunny Optical decreasing by 2.5%. Despite these setbacks, the Hang Seng is poised for a second consecutive weekly gain, up approximately 0.2% to date, supported by indications of alleviating Sino-U.S. trade tensions following the establishment of a trade framework in London this week.