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Hong Kong stocks retreat after Trump rally shooting, downbeat China data


Hong Kong stocks fell in early trade on Monday as risk appetite soured after the assassination attempt on former US President Donald Trump at a political rally, while weaker than expected Chinese economic data also added to gloom. The retreat comes at a time when investors are reining in expectations from China’s third plenum which kicks off today.

The Hang Seng Index slipped 1.1 per cent to 18,089.63 at 11am local trading time. The Hang Seng Tech Index declined 2.3 per cent, while the Shanghai Composite Index added 0.1 per cent.

Baidu led losses falling 4.6 per cent to HK$94.90, Alibaba fell 1.2 per cent to HK$77.20 and Tencent dropped 1.4 per cent to HK$391.60. JD.com declined 3.5 per cent to HK108.10, sportswear brand Li Ning fell 3.7 per cent to HK$15.62, while Chow Tai Fook retreated 3.6 per cent to HK$8.33.

A slew of Chinese economic data released on Monday showed the world’s second largest economy was still struggling to boost domestic demand. The second quarter GDP figures, which showed growth of 4.7 per cent year-on-year in April-June, lagged market expectations of 5.1 per cent. It was a slowdown from 5.3 per cent in the previous three months and the weakest growth since the third quarter of 2023.

Retail sales in June grew 2 per cent year on year, which was also below market expectations of 3.4 per cent.

“The growth figures for China is a dent for risk appetite,” said Tim Waterer, chief market analyst at KCM Trade. “Retail Sales reflected the still patchy domestic demand picture in China. Industrial Production was one of the few bright spots in the data today. All up – China’s economy is still struggling for traction as evidenced by the latest batch of data.”

Meanwhile, investors braced for the implications of the attempted assassination of President Trump in the US over the weekend.

“The direct impact could be a firmer US dollar, as higher odds of a Trump’s presidency suggest that his inflationary policies in terms of stricter immigration, tougher trade ties and increased spending could potentially be set to pass,” said Yeap Jun Rong, Market Analyst at IG.

Traders will closely monitor China’s third plenum of the 20th Party Congress, the long anticipated meeting where the country’s leaders gather and are expected to release economic reforms.

In its trading debut in Hong Kong today, vehicle hardware maker GL-Carlink Technology Holding shares gained 0.3 per cent from its IPO price to HK$5.

Other major Asian markets were mixed. Australia’s S&P/ASX 200 added 0.7 per cent and South Korea’s Kospi retreated 0.1 per cent. Japan’s markets are shut for a public holiday.


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