Business
Deteriorating Earnings and Weak Economic Data Push Hong Kong Stocks Near Two-Week Low, Despite Tech Gains
Shares in Hong Kong are trading at nearly the lowest level in two weeks due to worsening profit reports affecting investor sentiment. An analyst points out that the economic indicators remain poor at present, providing no basis for a shift in the current market trend.
The Hang Seng Index saw a decrease of 0.2 per cent, ending at 17,651.49. Meanwhile, the Hang Seng Tech Index experienced a 0.3 per cent rise, whereas the Shanghai Composite Index fell by 0.3 per cent.
Tech shares were the frontrunners in offsetting the wider market downturn, as Alibaba Group Holding climbed by 0.8 per cent to HK$80.10, Tencent Holdings increased by 0.1 per cent to HK$378.20, and Meituan surged by 2.2 per cent to HK$118.90.
The recent recovery in Hong Kong shares has stumbled, despite nearly a 4% increase in the reference index in August. The most recent financial statistics and company outcomes have not shown accelerated economic and profit expansion. This is due to factors like the manufacturing sector contracting for a fourth consecutive month and the struggles of banks and developers. However, the Federal Reserve is expected to implement its first interest rate reduction in four years. This action could potentially trigger a limited retreat, as it is likely to encourage investment in Asian markets.
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