Business
Dim Earnings Outlook and Weak Economic Data Dampen Hong Kong Stocks, Tech Sector Resists Downward Trend
Hong Kong shares are currently being traded close to their lowest value in two weeks due to declining profit margins negatively affecting investor outlook. An analyst commented, "The economic indicators remain unsatisfactory at present, thus there's no basis for a turnaround in the market trend."
At the end of trading, the Hang Seng Index saw a decrease of 0.2 per cent, finishing at 17,651.49. Conversely, the Hang Seng Tech Index experienced a slight increase of 0.3 per cent. Meanwhile, the Shanghai Composite Index pulled back by 0.3 per cent.
Tech shares were the prime movers in offsetting the wider market's decline, as Alibaba Group Holding surged by 0.8 per cent reaching HK$80.10, Tencent Holdings increased by 0.1 per cent to HK$378.20, and Meituan rose dramatically by 2.2 per cent to HK$118.90.
The resurgence of Hong Kong stocks has stumbled following a nearly 4% rise in the standard measure in August. The most recent economic information and business outcomes have not signaled accelerated economic and profit expansion, as the manufacturing sector contracts for the fourth consecutive month and banks and builders are struggling. However, any retreat might be restrained because the Federal Reserve is expected to implement its initial interest-rate reduction in four years, a step that will trigger a rush to Asian markets.
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