FX.co ★ Hong Kong Shares Subdued After China Data

By midday on Monday, Hong Kong's stock market experienced a marginal decline, with the index falling 24 points or 0.1% to settle at 23,869, marking its third consecutive session of losses. This downturn came as traders evaluated mixed economic data emerging from China. Notably, retail sales on the mainland observed their fastest growth in 15 months during May. Conversely, industrial production experienced its slowest increase in six months, while the unemployment rate dropped to its lowest point in half a year. Meanwhile, investors continued to monitor escalating tensions in the Middle East, as the conflict between Israel and Iran extended into its fourth day. In the U.S., a slight uptick in futures markets helped curtail further declines ahead of the Federal Reserve's upcoming interest rate decision on Wednesday. The Fed is anticipated to maintain its current borrowing rates for the fourth consecutive meeting, despite President Trump's calls for Chairman Powell to reduce rates. The sectors of consumer and financial stocks predominantly saw declines, while the property sector benefited from data indicating that China's new home prices experienced their smallest contraction in 13 months in May. Notable early losses were observed with Hansoh Pharma (-1.5%), Meituan (-1.0%), and Techtronic Industries (-0.7%).