12.02.202601:57:59UTC+00Hong Kong Market Dips After Multi-Day Rise

Hong Kong equities fell 172 points, or 0.6%, to 27,098 on Thursday morning, snapping a three-session winning streak as most sectors traded lower. Risk appetite weakened after a lackluster overnight session on Wall Street, where data showed the U.S. economy added far more jobs than expected in January, potentially complicating the Federal Reserve’s path to further rate cuts this year.

Trading momentum in Hong Kong also slowed as mainland markets approach the Spring Festival holiday, which begins on February 15. However, the downside was limited by expectations that a sharp moderation in mainland inflation and a continued decline in producer prices will encourage Beijing to introduce additional stimulus measures.

Supporting that view, the PBoC said earlier this week that it would reduce banks’ liability costs, maintain low overall financing costs, and work to prevent systemic financial risks. Notable laggards included Budweiser Brewing (-4.6%), Meituan (-1.9%), Laopu Gold (-1.5%), and Smoore International (-1.4%).