Business
Deteriorating Earnings Send Hong Kong Stocks Near 2-week Low Despite Tech Sector Gains: Analysts Predict No Immediate Market Reversal
Hong Kong's share market hovers around a two-week low, as poor earnings reports dampen investor mood.
An analyst comments, 'Current economic figures are still not strong, hence there’s no basis for a market trend shift at this time.'
The Hang Seng Index fell by 0.2 per cent, closing at 17,651.49. Meanwhile, the Hang Seng Tech Index saw an increase of 0.3 per cent, whereas the Shanghai Composite Index declined by 0.3 per cent.
Tech shares were the frontrunners in offsetting the broader market's decline, with Alibaba Group Holding seeing a 0.8 per cent increase to HK$80.10, Tencent Holdings experiencing a slight 0.1 per cent boost to HK$378.20, and Meituan surging 2.2 per cent to HK$118.90.
The resurgence of Hong Kong stocks has stumbled, despite nearly a 4% increase in the key index in August. The most recent financial figures and company outcomes have not suggested accelerated economic or profit growth, as the manufacturing sector has contracted for the fourth consecutive month and banks and property developers are struggling. However, any regression could be minimal as the Federal Reserve is expected to implement its first reduction in interest rates in four years, a decision that will stimulate investment in Asian markets.
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