Hong Kong Stocks Hover at Near Two-Week Low Amid Weak Economic Data and Dismal Earnings; Tech Stocks Provide Slight Respite

Hong Kong's stock market is hovering around a fortnight's low, as poor performance results dampen investor confidence. An analyst has noted that, with the current weak economic figures, there's no basis for expecting a turnaround in market trends.

The Hang Seng Index fell by 0.2 per cent, closing at 17,651.49. Meanwhile, the Hang Seng Tech Index saw a 0.3 per cent increase, while the Shanghai Composite Index declined by 0.3 per cent.

Tech stocks were the front-runners in offsetting the wider market's losses, as Alibaba Group Holding saw an increase of 0.8 per cent to HK$80.10, Tencent Holdings experienced a slight growth of 0.1 per cent to HK$378.20, and Meituan surged by 2.2 per cent to HK$118.90.

The resurgence of Hong Kong's stock market has stumbled following an almost 4% increase in the main index in August. The most recent economic figures and business earnings have not signaled a speedier growth in economy and profits, as the manufacturing sector contracts for the fourth consecutive month and banks and property developers struggle. However, any decline could be restrained as the Federal Reserve is expected to implement its initial reduction in interest rates in four years, a step that would encourage investments in Asian markets.