Hong Kong Stocks Hover at Two-Week Low Amid Weak Economic Data and Deteriorating Earnings: Analysts Predict Limited Reversal

Shares in Hong Kong are trading close to their lowest point in two weeks as poor earnings reports dampen investor outlook. The market analyst stated, "The economy's performance continues to be lackluster, offering no basis for a turnaround in the current market trend."

The Hang Seng Index fell by 0.2 per cent, closing at 17,651.49. The Hang Seng Tech Index, however, saw a slight increase of 0.3 per cent, while the Shanghai Composite Index experienced a decrease of 0.3 per cent.

Tech shares were the primary drivers in reducing the wider market's loss, with Alibaba Group Holding seeing a 0.8 per cent increase to HK$80.10, Tencent Holdings experiencing a 0.1 per cent rise to HK$378.20, and Meituan surging by 2.2 per cent to HK$118.90.

The recent surge in Hong Kong's stock market has stumbled after nearly a 4% rise in the standard index in August. The most recent economic figures and business outcomes have not shown any acceleration in economic and earnings growth, as the manufacturing sector contracts for a consecutive fourth month and banks and builders struggle. However, any decline could be restrained as the Federal Reserve is expected to implement its first reduction in interest rates in four years, a strategy that will encourage investments into Asian markets.