FX.co ★ Hang Seng Slips Ahead of Holiday

The Hang Seng index experienced its second consecutive decline on Monday, falling by 183 points, or 0.7%, to close at 26,958. Trading activity was muted as investors exercised caution ahead of a public holiday in Hong Kong on Tuesday, while markets in mainland China remained shut for the Golden Week celebrations. Investor sentiment was further dampened by political instability in Europe, triggered by unexpected reports of the French Prime Minister's resignation. The downturn was broad-based, with significant declines in both the technology and consumer sectors, each down approximately 1%. Among the hardest-hit companies were Galaxy Entertainment (-3.1%), Techtronic Industries (-2.8%), and Trip.com (-2.3%). Electric vehicle stocks also suffered notable losses, with Li Auto (-3.4%), Geely Auto (-2.1%), and XPeng (-1.8%) all seeing declines. Despite the negative trend, the downside was somewhat offset by continued growth in Hong Kong's private sector activity, though at a slower rate. On a brighter note, gold mining stocks performed exceptionally well as gold prices soared to an all-time high. Shandong Gold Mining surged 5.2%, Zijin Gold International jumped 7.3%, and Zhaojin Mining advanced 3.2%, defying the overall market trend.