FX.co ★ Hong Kong Shares Slip Ahead of China Trade Data

Hong Kong's stock market experienced a decline of 197 points, or 0.8%, bringing the index down to 26,282 during Friday's morning trading session. This downturn follows the market's most significant single-day increase since mid-August, as investors proceeded with caution ahead of China's forthcoming October trade data. Expectations suggest a significant slowdown in exports following prior surges aimed at avoiding U.S. tariffs, coupled with persistently weak imports reflecting fragile consumer confidence. Market participants also shifted their focus to the anticipated release of China's October Consumer Price Index (CPI) and Producer Price Index (PPI) data over the upcoming weekend, with deflation risks continuing to raise concerns. Meanwhile, on Wall Street, stocks declined overnight, influenced by a renewed downturn in the tech sector and apprehensions concerning the extended U.S. government shutdown affecting investor sentiment. The majority of sectors in Hong Kong saw declines, particularly in tech and property segments. Key underperformers included Pop Mart International, falling 4.0%, Sunny Optical Technology down 2.8%, Horizon Robotics declining by 2.7%, and Kuaishou Technology dropping 2.6%. Nonetheless, the market remains on track for a robust weekly gain of approximately 1.4%, buoyed by optimism regarding China's drive for technological self-sufficiency and a one-year trade truce with the U.S. following the meeting between Trump and Xi.