FX.co ★ Hong Kong Stocks Fall for 3rd Session After China PMI Data

Shares in Hong Kong dropped by 222 points, or 0.9%, to settle at 24,955 during early trading on Thursday. This marks the third consecutive session of decline, following the release of China's disappointing PMI data for July. Service sector activity experienced its slowest growth in eight months, while the manufacturing sector contracted for the fourth consecutive month, reflecting a deceleration in growth momentum. The data further emphasized mounting trade risks, exacerbated by substantial U.S. tariffs and the impacts of severe weather conditions. Concurrently, Federal Reserve Chair Jerome Powell countered market expectations for a potential rate cut in September, as the central bank maintained steady rates for the fifth meeting in a row. The losses were widespread, particularly affecting sectors such as property, consumer goods, and financial services. Notable declines were seen in stocks such as China Overseas Land (-4.7%), Meituan (-4.4%), and KE Holdings (-3.9%). Nevertheless, the Hang Seng index is still poised for a third consecutive monthly increase, having risen approximately 3.3% so far. This uptick is fueled by optimism regarding the potential extension of the 90-day U.S.-China tariff ceasefire. However, the recent discussions in Stockholm concluded with no tangible progress, and President Trump has yet to announce a decision.