31.10.202508:14:02UTC+00Hang Seng Posts Weekly Loss of 3.5%

The Hang Seng Index declined by 376 points, equivalent to 1.4%, concluding at 25,907 on Friday. This marked its third consecutive day of losses as sectors broadly experienced downturns. Investor sentiment took a hit following the release of China's official Purchasing Managers' Index (PMI), which indicated the steepest decline in manufacturing activity in six months during October. Additionally, growth in the services sector remained tepid. The temporary trade truce between the U.S. and China did little to bolster confidence, with market participants viewing it as merely a short-term reprieve rather than a substantial resolution. Adding to the pressure, Federal Reserve Chair Jerome Powell indicated that a rate cut in December is uncertain, referencing the scarcity of economic data caused by the ongoing U.S. government shutdown. Technology stocks bore the brunt of the downturn, with companies like SMIC declining by 5.4%, Tencent Holdings falling 2.9%, and Kuaishou Tech dropping 2.7%. These declines were chiefly driven by investors retracting from Chinese semiconductor firms that previously soared due to interest in AI and import substitution strategies. Consequently, the benchmark witnessed a near 1% loss for the week and a 3.5% decrease for October, thereby ending a five-month streak of gains.