Hong Kong Stocks Hover Near Two-Week Low Amid Deteriorating Earnings and Weak Economic Data: Tech Stocks Provide Silver Lining

Hong Kong's stock market hovers close to a fortnight's low due to declining profit margins affecting investor mood. An analyst suggests that the weak economic figures at present provide no basis for a turnaround in the market trend.

The Hang Seng Index fell by 0.2 per cent, ending at 17,651.49. Meanwhile, the Hang Seng Tech Index experienced a slight increase of 0.3 per cent, while the Shanghai Composite Index decreased by 0.3 per cent.

Tech shares were the main contributors in mitigating the overall market decline, with Alibaba Group Holding experiencing a 0.8 per cent increase to HK$80.10, Tencent Holdings seeing a minor 0.1 per cent rise to HK$378.20, and Meituan surging 2.2 per cent to HK$118.90.

The recent uptick in Hong Kong stocks has stumbled, following a nearly 4% increase in the standard measure in August. Most recent economic figures and business outcomes have not shown any signs of accelerated economic or profit growth, with the manufacturing sector contracting for a consecutive fourth month and banks and developers struggling. However, any potential setbacks could be kept in check as the Federal Reserve is expected to implement its first interest rate cut in four years, a decision that is likely to stimulate investment in Asian markets.