Business
Hong Kong Stocks Hover Near Two-Week Low Amid Weak Economic Data and Deteriorating Earnings
Shares in Hong Kong are trading close to their lowest point in two weeks as declining profits impact investor mood. An analyst states, 'The economic indicators remain sluggish for the time being, offering no basis for a market trend shift.'
The Hang Seng Index experienced a 0.2 per cent decrease, closing at 17,651.49. Meanwhile, the Hang Seng Tech Index saw a 0.3 per cent rise, while the Shanghai Composite Index fell back by 0.3 per cent.
Tech shares spearheaded the rise to mitigate the broader market's losses, with Alibaba Group Holding increasing by 0.8 per cent to HK$80.10, Tencent Holdings contributing a 0.1 per cent rise to HK$378.20, and Meituan surging 2.2 per cent to HK$118.90.
The surge in Hong Kong stocks has stumbled following a near 4% increase in the key index in August. Recent economic figures and company earnings have not suggested a quicker pace of economic and income expansion, as the production sector contracts for the fourth month in a row and banks and builders struggle. Nonetheless, any downturn may be kept in check as the Federal Reserve is expected to make its first reduction in interest rates in four years, a step that will encourage investment into Asian markets.
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