Hong Kong stocks fall as tech shares slide, Trump-Xi summit in focus

HONG KONG: Hong Kong stocks fell on Friday in holiday-thinned trade, with technology shares leading losses as investors awaited further clarity from an ongoing summit between US President Donald Trump and Chinese President Xi Jinping.  

Hong Kong’s benchmark Hang Seng Index fell 1.7% to 24,343.19, its lowest level in two months, while the Hang Seng China Enterprises Index, which tracks mainland companies listed in the city, dropped roughly 2%.

Tech shares led the declines, with the Hang Seng Tech Index down more than 2% at a three-month low and the AI sector sliding nearly 3%.

Trading volumes were light ahead of the local Mid-Autumn Festival holiday.

Mainland China’s financial markets were closed on Friday and will reopen on Monday.

Investors awaited more details from the Trump-Xi summit, which was heavy on symbolism but produced no apparent breakthroughs on issues including AI, trade, Taiwan and the Iran conflict.

“No one really is expecting any breakthrough, but I think the important thing is the floor has been set on the relationship, which is important in itself,” said Khoon Goh, head of Asia research at ANZ.

“It is moving in the right direction. I think that in itself should be welcomed by markets.”

Around the region, MSCI’s broadest index of Asia-Pacific shares outside Japan was flat, with Taiwan and South Korean markets also closed for a holiday.‑Reuters