Hong Kong Shares Set to Close Month on Weak Note

Hong Kong equities fell 200 points, or 0.8%, to 26,078 in early trade on Friday, retreating for a third consecutive session as most sectors declined.

Weak official PMI data from China in October weighed on sentiment, with factory activity contracting at the fastest pace in six months while the services sector remained subdued.

Traders also remained cautious over the temporary U.S.-China trade truce, which leaves some structural issues unresolved, and ahead of China’s full October PMI readings and Hong Kong’s Q3 GDP report.

Meanwhile, Wall Street closed lower overnight after Fed Chair Powell signaled that a December rate cut “is not a foregone conclusion.” For the week, markets are on track for a slight decline, down around 0.3% so far, potentially marking the first monthly drop in six months.

Notable losses included SMIC (-4.5%), PICC Property & Casualty (-3.2%), Pop Mart Intl. (-2.8%), and Tencent Holdings (-1.5%).