FX.co ★ Hong Kong Stocks Retreat to 2-Week Low

Hong Kong equities decreased by 196 points, or 0.8%, to 25,565 in early trading on Tuesday, continuing a downward trend for the second consecutive session after Wall Street's overnight decline. Investor sentiment was dampened by concerns over the possibility that the U.S. Federal Reserve might implement a "hawkish cut" on Wednesday. This involves reducing interest rates while potentially signaling a pause in cuts come January. The benchmark index reached a two-week low as caution intensified before the release of China’s Consumer Price Index (CPI) and Producer Price Index (PPI) for November, scheduled for Wednesday. Nonetheless, the decline was somewhat mitigated after China's Politburo pledged to enhance domestic demand and support the economy in 2026 with increased proactive measures, including a "more proactive fiscal policy" and an "appropriately loose monetary policy." In a separate development, U.S. President Trump announced that Nvidia would be permitted to sell its H200 chips to designated buyers in China, subject to national security conditions. Among the leading stocks experiencing declines were China Hongqiao Group (down 2.9%), Zijin Gold International (down 2.8%), Pop Mart International (down 2.4%), and Xiaomi Corp. (down 1.6%).