FX.co ★ Hang Seng Finishes 0.7% Lower

The Hang Seng index fell by 188 points, equivalent to a 0.7% decline, closing at 26,384 on Monday. This drop marks a continuation of losses from the previous trading session, reflecting widespread declines across various sectors. Investors opted to steer clear of high-risk assets as Chinese stocks suffered additional setbacks amid escalating tensions between Beijing and Tokyo. China has issued a warning against traveling to Japan, exacerbating already strained relations. Investor sentiment was further dampened by reduced expectations of a U.S. interest rate cut in December, following cautious remarks from policymakers. Although a rise in U.S. futures helped limit further losses, anticipation builds for significant economic data releases after the longest U.S. government shutdown in history. In China, monthly loan prime rate adjustments are scheduled for later this week, following the People's Bank of China's decision to maintain rates at historically low levels for the fifth consecutive month in October. On the fiscal front, China is planning a "more proactive" policy approach for the next five years, while carefully managing debt risks. Notable decliners in the Hang Seng index included Geely Auto, which fell by 1.8%; Trip.com and Lenovo Group, each down 3.8%; Horizon Robotics, which declined by 4.2%; Zhaojin Mining, down 2.8%; and Orient Overseas, also down by 1.8%.