Hong Kong Stocks Retreat Following Eight-Day Gains
Hong Kong stocks slipped 343 points or 1.5%, to 23,205 during Tuesday’s morning session, snapping an eight-day winning streak as investors locked in profits after the Hang Seng hit a 1-1/2-month high. U.S. futures also edged lower ahead of a key inflation report.
At the same time, concerns over persistent deflation in China resurfaced after consumer prices declined for a third consecutive month in April, while factory-gate prices posted their steepest drop in six months. However, losses were somewhat cushioned by a notable pause in U.S.-China trade tensions following high-level talks, with both countries set to slash tariffs by 115 percentage points by Wednesday.
Hopes also rose for direct talks between President Donald Trump and President Xi Jinping in the coming days. Selling was broad-based, with tech and consumer stocks leading declines. Among the biggest large-cap laggards were Sunny Optical (-5.2%), BYD Electronic (-4.7%), SMIC (-3.2%), Meituan (-3.0%), and Xiaomi (-2.6%).
Source: Trading Economics
