Hong Kong Stocks Hover at Two-Week Low Amid Weak Economic Data and Dismal Earnings Reports, Tech Stocks Offer Slight Respite

Hong Kong shares are currently trading close to a fortnight's low due to declining profits affecting investor sentiment. An analyst points out that the economic indicators remain feeble at present, providing no basis for a turnaround in the market trend.

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

Tech shares were the key drivers in reducing the broader market's losses, as Alibaba Group Holding increased by 0.8 per cent to a value of HK$80.10, while Tencent Holdings saw a slight growth of 0.1 per cent taking it to HK$378.20 and Meituan experienced a significant surge of 2.2 per cent, reaching HK$118.90.

The resurgence of Hong Kong stocks has stumbled despite nearly a 4% increase in the standard index in August. Recent economic figures and business outcomes have not shown an acceleration in economic and earnings growth, as the manufacturing sector has contracted for the fourth consecutive month and banks and developers are struggling. However, any downturn might be contained, since the Federal Reserve is expected to make its first interest rate cut in four years, an action that will stimulate investment in Asian markets.