Hong Kong stocks eased on Monday as investors locked in profits from the recent rally and adopted a cautious stance ahead of the Mid-Autumn Festival holiday on Tuesday. The benchmark Hang Seng Index (.HSI) fell 0.61% by the lunch break, marking its second consecutive session of decline.
Market Details
Technology shares led losses, with the Hang Seng Tech Index (.HSTECH) dropping 1.2%. Among automakers, Li Auto (2015.HK) slipped 2.9%, while Xpeng (9868.HK) and Geely Auto (0175.HK) declined 1.5% and 1.8%, respectively. The Hang Seng Automobile Index (.HSAMI) eased 1.1%.
In contrast, gold miners rallied as gold prices hit a record high above $3,900 per ounce, driven by safe-haven demand amid a weakening yen and concerns over the U.S. government shutdown. Shandong Gold Mining (1787.HK) and Zijin Mining International (2259.HK) surged 5.5%, while Zhaojin Mining (1818.HK) gained 3.2%.
Why It Matters
The mixed trading pattern reflects investors’ short-term caution before the holidays and profit-taking after strong recent gains. The Hang Seng Index had surged 3.9% last week its biggest weekly rise since March and briefly touched 27,381.84 points, its highest level since July 2021.
Market participants include Hong Kong retail and institutional investors, major tech and automotive firms listed on the exchange, and gold mining companies benefiting from global price rallies. Global economic uncertainties especially the U.S. fiscal outlook, yen volatility, and China’s Golden Week market closure also influence sentiment.
Future Scenario
With mainland Chinese markets closed until October 8, trading in Hong Kong is expected to remain subdued and liquidity-thin. Analysts anticipate investors will stay defensive, focusing on safe-haven assets like gold, until global macroeconomic clarity returns.
With information from Reuters.
