Market Performance - Emerging markets outperformed slightly last week, with MSCI Emerging Markets up by 1.9% compared to MSCI Developed Markets at 1.3% [3] - Among developed markets, the Nasdaq index showed the strongest performance with a gain of 2.2%, while the Nikkei 225 was the weakest, declining by 0.6% [3] - In the emerging markets, the South Korean Composite Index led with a 4.2% increase, while the Mexican MXX index lagged with a 0.4% rise [3] Trading Sentiment - Global stock market trading volumes generally weakened last week, with Hong Kong's Hang Seng Index trading volume decreasing to 171 billion shares and $588.7 billion [11] - In Hong Kong, short selling increased to 15.9%, indicating a low historical sentiment level, while the NAAIM manager index in the US decreased to 81.6%, suggesting a high historical sentiment level [11] Valuation Trends - Developed markets saw an overall valuation increase, with the latest PE and PB ratios at 22.7x and 3.6x, respectively, placing them in the 90% and 99% percentile levels since 2010 [17] - Emerging markets also experienced a valuation uplift, with PE and PB ratios at 15.2x and 1.9x, respectively, in the 75% and 86% percentile levels since 2010 [18] Sector Performance - In Hong Kong, the materials and healthcare sectors led with gains of 5.6% and 4.1%, while telecommunications and industrial sectors lagged with declines of 0.6% and 0.2% [9] - In the US, communication services and information technology sectors outperformed with increases of 3.2% and 3%, while consumer staples and utilities underperformed with declines of 1.6% and 1% [9] Fund Flows - There was a continuation of capital inflow into Hong Kong stocks, despite a slight tightening of macro liquidity globally [25] - Recent data indicated a net outflow of 5.2 billion HKD from Hong Kong stocks, with stable foreign capital experiencing a significant outflow of 21.8 billion HKD [27] Earnings Expectations - Earnings expectations for global markets were mostly revised downwards last week, with the Hang Seng Index's 2025 EPS forecast adjusted from 2220 to 2219 [29] - In the US, the S&P 500's 2025 EPS forecast remained unchanged at 263, while in Europe, the STOXX50's EPS forecast also held steady at 347 [30]