The Hong Kong market continued its downward trend, closing 1.54% lower amid a lack of positive catalysts. External headwinds persist, including geopolitical tensions affecting Venezuela's oil exports, as U.S. pressure disrupts shipments. Meanwhile, the Bank of Japan is expected to raise rates to 0.75%, marking its second hike this year.

Gold prices retreated after progress in U.S.-Ukraine peace talks, dragging down Zijin Mining International (02259) by 6%. Market sentiment was further dampened by rumors of potential tax adjustments for high-tech firms, though the impact is likely limited to specific sectors like chips and AI.

Autonomous driving stocks outperformed, with Zhejiang Shibao (01057) surging nearly 13% on its L3+-ready steering technology and strong earnings growth. Youxia Innovation (02431) rose 9% after securing major logistics vehicle orders.

Domestic consumption plays gained traction after policymakers pledged to boost household spending. Red Star Macalline (01528) advanced over 2% on its retail diversification strategy. Airlines also shone, as China Eastern Airlines (00670) reported robust November traffic metrics and a return to profitability, supported by favorable fuel costs and forex trends.

In corporate news, China Eastern Airlines (00670) highlighted strong off-season occupancy rates (87.37% in November) and international route expansion, including plans for a record-breaking Buenos Aires route. The sector benefits from recovering travel demand and easing cost pressures.

The commerce ministry finalized a 5-year anti-dumping duty on EU pork imports, benefiting domestic producers like COFCO Joycome (01610) and Dekon Agr (02419).

Later today, U.S. nonfarm payrolls data will be closely watched for labor market signals. Market participants hope for a balanced report to avoid renewed volatility.