FX.co ★ Hong Kong Shares Set for First Weekly Loss in Four

Hong Kong's stock market opened August with a slight decrease, dropping by 30 points or 0.1% to settle at 24,748. This marks the fourth consecutive session of decline, placing the index at its lowest point in two weeks. Market sentiment was negatively impacted by the implementation of new reciprocal tariffs by U.S. President Trump, ranging from 10% to 41%, on countries without existing trade agreements, effective today. Additionally, a private survey revealed an unexpected contraction in China's manufacturing sector for July, aligning with official data that indicated a fourth consecutive monthly decline. This downturn is attributed to persistent trade challenges and adverse weather conditions. For the week, the Hang Seng Index is poised for its first decline in four weeks, experiencing a 2.7% drop amid inconclusive U.S.-China trade discussions earlier in the week, leaving tariff decisions under the sole discretion of President Trump. Key stocks experiencing declines included Smoore Holdings, which fell by 7.8%, Prada by 4.8%, Laopu Old by 2.8%, and Li Auto by 2.5%. However, investor losses were partially mitigated by optimism regarding China's upcoming Politburo meeting, anticipated to unveil further economic stimulus measures.