FX.co ★ Hang Seng Dips But Points to Weekly Gains

In early trading on Friday, Hong Kong's stock market saw a decline of 73 points, or 0.3%, bringing the Hang Seng Index down to 23,834. This drop reversed the gains made in the previous session as investors exhibited caution due to ongoing uncertainty surrounding the trade negotiations between the United States and China. Market participants are also eagerly awaiting a range of key economic indicators from China, which is New Zealand's largest trading partner, expected to be released next Monday. This data includes consumer and producer price indices, along with trade statistics, amid persistent weak domestic demand and lingering concerns over US tariffs.

The Hang Seng's performance mirrored a subdued session on Wall Street from the previous night, influenced by a conflict between President Trump and Elon Musk, as well as renewed tension regarding US-China trade relations. The technology sector experienced significant downward pressure, with notable declines seen in companies such as Sunny Optical Technology, which fell by 2.5%, Alibaba Health Technology with a 2.5% decrease, Xiaomi dropping 2.3%, and BYD Electronics down by 1.5%. Despite the downturn on Friday, the Hang Seng is on track for a 2.3% increase for the week, following losses recorded the previous week.