FX.co ★ Hong Kong Shares Edge Lower Amid Storm Alert and China Data Caution

The Hong Kong stock market experienced a minor decline on Tuesday morning, with a decrease of 26 points or 0.1%, settling at 24,711. This movement reversed the gains achieved in the previous session. Market participants exercised caution due to the extension of the highest level "black" rainstorm warning by the city's weather bureau until 11 a.m. The severe weather conditions affected operations in schools, hospitals, courts, and registry offices. Despite these disruptions, the Hong Kong Stock Exchange maintained operations based on its revised policy allowing trading under adverse weather conditions. Investors were also on edge, anticipating China's upcoming July trade data alongside prospects for inflation figures, amidst continuing worries about increasing trade barriers and subdued domestic demand. The market saw consumer stocks decline while property, financial, and tech sectors recorded modest gains. In contrast, the U.S. markets saw all three major indices achieve their largest daily increase since May 27, driven by investors seeking bargains following a selloff on Friday and increasing speculation about a potential rate cut in September, prompted by weaker-than-anticipated U.S. employment data. Among the notable stock decliners were KE Holdings (-4.4%), Laopu (-3.1%), Chow Tai Fook (-2.7%), and Meituan (-1.1%).