FX.co ★ Hong Kong Stocks Fall for 3rd Session, Near 2-Week Low

Hong Kong stocks fell by 349 points, or 1.3%, to reach 26,039 during early trading on Tuesday, marking a decline for the third consecutive session and nearing a two-week low. This downturn follows a cautious lead from Wall Street, which is currently grappling with uncertainties surrounding interest rates and the forthcoming earnings reports from major tech firms. Wednesday’s anticipated earnings release from Nvidia is poised for close examination, particularly given the prevailing concerns over the high valuations of AI companies, despite expectations that Nvidia will outperform forecasts. Additionally, market participants are awaiting the postponed U.S. employment figures for September, now expected on Thursday after the conclusion of a government shutdown. Geopolitical tensions further pressured the market as China advised its citizens against traveling to Japan and ruled out a meeting of leaders at the imminent G20 summit in South Africa. Nonetheless, losses were tempered by expectations that the People's Bank of China (PBoC) will maintain its key lending rates at historically low levels for the sixth consecutive session to bolster the sluggish economy. All sectors experienced declines, with significant drops seen in companies such as XPeng (-8.6%), China Hongqiao Group (-4.8%), Lenovo (-4.0%), and Xiaomi (-2.4%).