FX.co ★ Hong Kong Stocks Fall Sharply Yet Head for Weekly Gain

In early trading on Friday, Hong Kong stocks fell by 332 points or 1.3%, reaching 25,192, marking the second consecutive session of declines. Most sectors experienced downturns, particularly in the financial, technology, and consumer segments. This negative sentiment followed the release of China's July data, revealing that both industrial output and retail sales growth were below expectations. This data highlights the slowing economic momentum amid ongoing external challenges, weather-related disruptions, and subdued domestic demand. Additionally, the surveyed unemployment rate climbed to a four-month high of 5.2%. Despite these setbacks, the Hang Seng index remains poised for a second consecutive weekly gain, having risen by over 1% this week. This resilience is bolstered by the recent 90-day extension of the US–China trade truce. Over in the United States, major indices continue to reach new heights due to growing anticipation of a Federal Reserve rate cut in September. Meanwhile, Beijing is preparing to subsidize consumer loan interest to stimulate household spending and is set to launch a nationwide initiative to upgrade equipment. Among the early decliners were Meituan, which decreased by 3.5%, AIA Group down by 3.3%, Sunny Optical dropping by 3.1%, and Geely Auto slipping by 2.7%.