Hong Kong stocks fall amid thin trade; Trump-Xi summit in focus

By Reuters News

HONG KONG, Sept 25 (Reuters) - Hong Kong stocks fell on Friday in holiday-thinned trade, with insurance and tech shares leading losses, as investors awaited further details from Chinese President Xi Jinping's Thursday summit with US President Donald Trump in Washington.

** Hong Kong's benchmark Hang Seng Index .HSI fell 1% to 24,510.09, its lowest level in two months, while the Hang Seng China Enterprises Index .HSCE, which tracks mainland companies listed in the city, dropped 1.2%.

** Insurance and tech shares led the declines, with AIA 1299.HK losing 2.7% while Alibaba 9988.HK dipped 1.5%.

** 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.

** Southbound trading via stock connect was closed on Friday.

** Investors were on the lookout for more details of 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."

** The trade truce has been extended, but the core disputes over technology, investment and geopolitics remain unresolved, said Carlos Casanova, senior economist for Asia at UBP. "The next meaningful test will come at the APEC Summit in Shenzhen," he said.

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.