Business
Hong Kong Stocks Hover Near Two-Week Low Amid Weak Economic Data and Deteriorating Earnings, Despite Tech Stocks Rally
Hong Kong's stock market is hovering close to a two-week low, as worsening profit reports dampen investor confidence. Analysts suggest that the current economic indicators do not provide any basis for a market turnaround at this point, as they continue to remain feeble.
The Hang Seng Index experienced a decrease of 0.2 per cent, closing at 17,651.49. Meanwhile, the Hang Seng Tech Index saw a rise of 0.3 per cent, while the Shanghai Composite Index fell by 0.3 per cent.
Tech shares were the primary force in mitigating the wider market's decline, as Alibaba Group Holding saw a 0.8 per cent increase to HK$80.10, Tencent Holdings experienced a slight rise of 0.1 per cent to HK$378.20, and Meituan surged by 2.2 per cent to HK$118.90.
The resurgence of Hong Kong stocks has stumbled following a near 4% increase in the primary index in August. Recent economic figures and company performance reports have not shown a speedier pace of economic and profit expansion, as the manufacturing sector contracts for the fourth consecutive month and banks and developers struggle. However, any decline might be contained as the Federal Reserve is expected to announce its initial reduction in interest rates in four years, a decision likely to encourage investment in Asian markets.
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