Hong Kong shares slipped 74 points, or 0.3%, to 26,514 in early Thursday trading, reversing gains from the prior session as declines spread across most sectors. Sentiment turned cautious ahead of December inflation data in the city later today. In November, headline inflation was unchanged at 1.2%, while underlying inflation also held steady at 1%. Investors anticipated Hong Kong’s Q1 business sentiment reading, following a five-quarter high in Q2. Still, the downside was capped by an overnight rally on Wall Street after U.S. President Trump walked back tariff threats and ruled out using force to seize Greenland from an ally, easing geopolitical risks. In China, stocks extended gains after Bridgewater Associates reaffirmed its positive view on mainland equities, citing improving corporate profit expectations and supportive policy signals. Notable decliners in the Hang Seng included Zhaojin Mining (-4.2%), Zijin Gold Intl. (-2.4%), Minimax Group (-2.3%), and Xiaomi Corp. (-1.1%).
