The Hong Kong stock index weakened in Monday morning trading, dropping around 165 points or 0.6% to 25,915. This correction halted the previous two sessions' rally. Most sectors fell, with financial and consumer stocks leading the decline. Investors have become more cautious after consecutive gains, opting to hold off while awaiting new data and sentiment.

The market is now focused on the release of China's November trade data, scheduled for release today. Previously, October data recorded an unexpected decline in exports and weaker-than-expected imports, raising fresh concerns about the health of the Chinese economy. Furthermore, market participants are also awaiting the CPI and PPI data, which will be released later this week amid lingering concerns about the risk of deflation. Globally, US stock futures traded mixed as market participants awaited the Fed's policy decision, with expectations shaped by signs of a weakening labor market and a change in leadership at the US central bank.

However, selling pressure on the Hong Kong stock exchange was contained by positive news on the foreign exchange reserves front. The latest data shows China's foreign exchange reserves increased in November, ahead of the Central Economic Work Conference. Hong Kong's foreign exchange reserves also rose for the second consecutive month and are now at a five-month high. Meanwhile, several stocks recorded significant declines, including Pop Mart (-5.8%), Innovent Biologics (-5.7%), Cherry Auto (-4.2%), and China Hongqiao (-3.4%), reflecting investor selectivity and heightened caution amid regional and global economic uncertainty. (az)

Source: Newsmaker.id