Hong Kong Shares Fall from 3-1/2-Year Peak

Hong Kong stocks slipped 82 points or 0.3% to 24,916 during Tuesday’s morning session, snapping two-day strength as investors took profits after the Hang Seng hit a 3-1/2-year high in the prior session.

Caution also set in ahead of the August 1 tariff deadline, with the EU reportedly exploring broader countermeasures as hopes for a deal with Washington diminish.

Losses were partially offset by record highs on Wall Street’s S&P 500 and Nasdaq, driven by optimism ahead of major tech earnings.

Locally, Hong Kong’s annual inflation rate hit to a three-month low of 1.4% in June, despite reduced electricity subsidies.

Core inflation remained steady at 1.0%, with a government spokesperson noting that domestic and external price pressures are expected to stay broadly contained in the near term.

Most sectors traded lower, led by falls in financial and tech stocks.

Early laggards included Horizon Robotics (-3.0%), Li Auto (-2.4%), Smoore Holdings (-2.3%), and Bank of China Hong Kong (-2.0%).