FX.co ★ Hong Kong Market Dips as China PMI Release Nears

Hong Kong shares fell 168 points, or 0.6%, to 26,602 in Thursday morning trade, erasing the previous session’s gains as mainland markets pulled back and investors cautiously awaited February PMI figures due next week. U.S. futures also drifted lower after Wall Street’s overnight rally, with sentiment pressured by IMF warnings that the U.S. current account deficit remains excessively large, echoing concerns raised under the Trump administration.

Losses in Hong Kong were partially contained after the city’s 2026/27 budget projected a return to an operating surplus earlier than expected, following three consecutive years of deficits. Adding some support, inflation in Hong Kong eased to 1.1% in January, a four-month low and slightly below market forecasts.

The technology sector led the decline, with Nvidia’s strong earnings failing to spark broader risk appetite. Consumer names also weakened amid concerns over a post-holiday slowdown following Lunar New Year spending. Early notable losers included KE Holdings (-4.9%), Galaxy Entertainment (-3.7%), Trip.com (-2.8%), and Kuaishou Technology (-2.7%).