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

By Reuters News

HONG KONG, Sept 25 (Reuters) - 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 .HSI fell 1.7% to 24,343.19, its lowest level in two months, while the Hang Seng China Enterprises Index .HSCE, which tracks mainland companies listed in the city, dropped roughly 2%.

** Tech shares led the declines, with the Hang Seng Tech Index .HSTECH down more than 2% at a three-month low and the AI sector .HSAIT 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 .MIAPJ0000PUS was flat, with Taiwan and South Korean markets also closed for a holiday.

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