FX.co ★ Hang Seng Drops for Second Day But Logs Weekly Gain

On Friday, the Hang Seng Index dropped by 249 points, equivalent to a 1.0% decline, closing at 25,270. This marked its second consecutive session of losses, with all sectors experiencing downturns. Investor sentiment was negatively affected by lackluster data from China for July: industrial output saw its slowest growth in eight months, retail sales hit a six-month low, and the unemployment rate climbed to a four-month high of 5.2%. The Chinese statistics agency also highlighted ongoing risks stemming from global economic challenges and weather-related disruptions. Nonetheless, the index enjoyed a 1.7% increase over the week, marking its second weekly rise in a row. This positive performance was buoyed by record highs on Wall Street and optimism about a potential interest rate cut by the Federal Reserve in September. Additionally, there was an extension of the US-China trade truce by 90 days. Meanwhile, Beijing introduced new measures to bolster the slowing economy, including subsidizing consumer loan interest rates and instructing state-owned enterprises to purchase unsold properties from struggling developers. NetEase experienced a 3.6% decline due to weak gaming revenue, while other companies such as Sun Hung Kai Properties (-5.3%), Henderson Land (-4.8%), MTR Corp (-3.1%), Sunny Optical Technology (-2.8%), and Meituan (-2.3%) also recorded losses.