FX.co ★ Hong Kong Shares Start the Week Lower

Hong Kong stocks declined by 165 points, representing a 0.6% drop to 25,915 during Monday morning trading. This downturn halted a two-day rally as most sectors experienced declines, with financials and consumer stocks leading the losses. Investor sentiment turned cautious in anticipation of China's November trade data, expected later in the day, following October's surprising decrease in exports and lower-than-anticipated imports. Focus also shifted to the forthcoming CPI and PPI figures due this week amid ongoing concerns about deflation. Meanwhile, U.S. futures displayed mixed movements as market participants awaited the Federal Reserve’s policy decision later this week, influenced by indicators of a weakening labor market and impending leadership changes at the central bank. Losses were moderated by new data showing a rise in China’s foreign exchange reserves in November before the Central Economic Work Conference. Hong Kong’s reserves also increased for a second consecutive month, reaching a five-month peak. Significant decliners in the market included Pop Mart (-5.8%), Innovent Biologics (-5.7%), Cherry Auto (-4.2%), and China Hongqiao (-3.4%).