Hang Seng retreats but week is positive

The Hang Seng slipped 146 points, or 0.5%, to close at 27,141 on Friday, pulling back from a four-year high after three sessions of gains, as traders took profits following five straight monthly rises since May.

Sentiment was also hit by jitters over the U.S. government shutdown, which has halted many official activities, including the jobs report originally due today, with markets bracing for closures lasting into next week.

Trading was also subdued as mainland markets remained shut until Oct. 8. Losses were broad-based, with tech stocks weighing most, led by Kuaishou Tech. (-3.8%), Trip.com (-2.0%), and Sunny Optical (-0.8%).

Still, markets in the city jumped 3.9% for the week, buoyed by recent Wall Street’s record highs and bullish momentum in Chinese stocks ahead of a plenum later this month.

Meanwhile, U.S. Treasury Secretary Bessent expects a “pretty big breakthrough” at the upcoming U.S.-China trade talks, with a potential Trump-Xi meeting in South Korea at the end of October.