Business
Hong Kong Stocks Hover Near Two-Week Low Amid Deteriorating Earnings and Weak Economic Data: Tech Provides Buffer
Hong Kong's share market is hovering around a fortnight's bottom due to declining profits affecting investor mood. 'The economy's performance continues to be poor at this time, leaving no basis for a shift in market direction,' states an analyst.
The Hang Seng Index saw a decrease of 0.2 per cent, closing at 17,651.49. Meanwhile, the Hang Seng Tech Index experienced a 0.3 per cent rise, while the Shanghai Composite Index fell by 0.3 per cent.
Tech shares were the main drivers in mitigating the broader market's losses, as Alibaba Group Holding saw an increase of 0.8 per cent, taking its value to HK$80.10. Meanwhile, Tencent Holdings experienced a slight growth of 0.1 per cent, reaching HK$378.20, and Meituan surged by 2.2 per cent, standing at HK$118.90.
The resurgence of Hong Kong's stock market has stumbled, despite a nearly 4% increase in the main index in August. The most recent economic figures and business outcomes haven't shown promising economic and profit expansions, as the manufacturing sector has contracted for four consecutive months, and both banks and developers are struggling. However, any potential decline could be restrained by the Federal Reserve's probable enactment of its first interest rate cut in four years, a decision which could stimulate investments into Asian markets.
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