Business
Hong Kong Stocks Hover Near Two-Week Low Amid Weak Economic Data and Deteriorating Earnings: Tech Sector Serves as Saving Grace
Hong Kong's stock market is hovering close to a two-week low due to worsening profit reports negatively impacting investor confidence. An analyst claims that the weak economic indicators provide no basis for a potential 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 saw a rise of 0.3 per cent, while the Shanghai Composite Index decreased by 0.3 per cent.
Tech shares were the front-runners in mitigating the wider market's losses, with Alibaba Group Holding witnessing a 0.8 per cent hike to HK$80.10, Tencent Holdings experiencing a slight increase of 0.1 per cent to HK$378.20, and Meituan surging by 2.2 per cent to HK$118.90.
The resurgence of Hong Kong stocks has stumbled following an approximately 4% rise in the primary index in August. Recent economic figures and company performance results have not shown any accelerated economic or profit growth. The manufacturing sector has seen a decline for the fourth consecutive month, and both banks and developers are feeling the strain. However, any potential setbacks could be restrained due to the Federal Reserve's expected first interest rate cut in four years, a development that would encourage investments into Asian markets.
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