The Hong Kong stock market has moved higher now in back-to-back sessions, although it has picked up just over 30 points or 0.2 percent along the way. The Hang Seng Index finished just above the 19,120-point plateau, and now investors are expecting a slightly lower open for the market on Tuesday.
The global forecast for the Asian markets is flat with a touch of weakness following disappointing news from the IMF, plus soft economic data from the United States. The International Monetary Fund on Monday slashed its 2013 growth forecast for the global economy, while the Commerce Department reported an unexpected drop in retail sales. The European markets were mixed but little changed and the U.S. bourses were slightly lower, and the Asian markets figure to split the difference.
The Hang Seng finished slightly higher again on Monday, bumped into positive territory by gains from the casino stocks.
For the day, the index added 28.71 points or 0.15 percent to finish at 19,121.34 after trading between 19,061.67 and 19,265.34 on volume of 35.28 billion Hong Kong dollars.
Among the actives, Sands China jumped 2.4 percent, while ZTE plummeted 16.3 percent, TCL Communication plunged 12.1 percent and Sun Hung Kai Properties shed 1.0 percent.
The lead from Wall Street is slightly negative as stocks saw moderate weakness on Monday, giving back some ground after ending last Friday's trading sharply higher. The pullback came on the heels of the release of a disappointing report on U.S. retail sales.
Much of the weakness followed a report from the Commerce Department showing that retail sales fell by 0.5 percent in June following a 0.2 percent decrease in May. Economists had expected sales to edge up 0.2 percent. With the decrease, retail sales fell for the third straight month. Excluding a drop in sales by motor vehicle and parts dealers, retail sales still fell by 0.4 percent in June, matching the decrease in the previous month.
Selling pressure was subdued after a separate report from the New York Federal Reserve showed stronger than expected growth in regional manufacturing activity. The New York Fed said its general business conditions index rose to 7.4 in July from 2.3 in June, with a positive reading indicating growth in the manufacturing sector. Economists had expected a more modest increase to a reading of 4.5.
A positive reaction to quarterly results from Citigroup (C) also helped to limit the downside for the markets, with the financial giant advancing 0.6 percent. Citigroup reported Q2 earnings that fell year-over-year but still beat estimates - although revenue fell by slightly more than expected.
The major averages ended the day in negative territory but well off their lows for the session. The Dow fell 49.88 points or 0.4 percent to finish at 12,727.21, while the NASDAQ slid 11.53 points or 0.4 percent to end at 2,896.94 and the S&P 500 edged down 3.14 points or 0.2 percent to 1,353.64.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.