Hong Kong Stocks Drop Sharply After Trade Data
Hong Kong shares fell 282 points or 1.1% to 25,277 in early trade Tuesday, pulling back from Monday’s gains as all sectors retreated. Investors reacted to weak June trade data in the city, showing the slowest growth in exports and imports in five months on softening global and domestic demand as trade risks mounted.
Some traders took profits after the Hang Seng revisited near four-year highs while Wall Street ended mixed overnight. Sentiment was further weighed by caution ahead of key U.S. events this week, including the Fed’s rate decision and inflation readings.
In China, July PMI data is expected in the coming days, along with a private sector survey. Losses were capped by optimism that U.S.-China trade talks in Stockholm could lead to a 90-day extension of their tariff truce. On the corporate front, Britain’s GSK and China’s Jiangsu Hengrui signed a $500 million deal to co-develop new medicines. Decliners included ZTO Express (-3.9%), KE Holdings (-3.6%), and Xiaomi Corp. (-2.4%).
Source: Trading Economics
