FX.co ★ Hong Kong Shares Dip But Head for Solid Weekly Gains

Hong Kong's stock market declined by 262 points, or 1.0%, to 25,410 points on Friday morning, marking its first drop after a six-session rally. This downturn comes as investors opted to take profits following the market's surge to nearly a four-year high earlier this week. Additionally, there is increased caution in anticipation of next week's third round of trade negotiations with the United States in Stockholm, which aim to extend the tariff ceasefire scheduled to end on August 12. Meanwhile, Wall Street closed with mixed results, driven by a rise in U.S. Treasury yields after robust U.S. labor data, strengthening expectations of the Federal Reserve maintaining its current interest rates for a longer period. Most sectors experienced declines, particularly technology, consumer, and financial stocks. Early losers in the session included Kuaishou Tech, which fell by 4.1%, Akeso Inc., which dropped by 3.2%, and Xiaomi Corp., which declined by 1.9%. Despite this downturn, the Hang Seng Index remains poised for its third consecutive weekly gain, increasing approximately 2.4% so far. This growth is bolstered by optimism surrounding a major hydropower project in Tibet and new policy support from Beijing for key industries. Investors are also closely monitoring China's upcoming Politburo meeting, expected to influence economic policy direction for the second half of 2025.