Hang Seng Index Closes Lower Awaits Key Data

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Bloomberg – On Friday, the Hang Seng Index experienced a slight drop, falling 11.52 points, or nearly 0.1%, to close at 16,334.38. This marked the end of the week with a near 3% decrease, making it the third consecutive week of decline. The downward trend came amid mostly lower US stock futures, particularly as investors awaited the key US job report for November, due later in the day.

Hang Seng Index

Hang Seng Index – Daily Chart

The cautious mood persisted among traders, partly due to the anticipation of China’s Consumer Price Index (CPI) and Producer Price Index (PPI) data set to be released on Saturday. This follows October’s unexpected drop in consumer prices and a slower decline in producer prices. However, the Hang Seng managed to pare some of its early losses, buoyed by unexpectedly robust trade data from mainland China for November. The trade surplus exceeded expectations, and exports increased, a notable change following six months of contraction.

Additionally, there was a positive shift in China’s foreign exchange reserves, which increased last month to CNY 3.172 trillion, up from a 12-month low of CNY 3.101 trillion in October. In the market sectors, property, technology, and consumer stocks saw declines, while financials showed gains. Specific stocks like China Resources Land fell by 4.8%, with others such as Li Auto dropping 2.7%, Xiaomi Co. by 1.4%, and Semiconductor Manufacturing by 1.0%.