Business
Hong Kong Stocks Hover Near Two-Week Low Amid Weak Economic Data and Deteriorating Earnings, Tech Stocks Offer Respite
Hong Kong's stock market is hovering close to its lowest point in two weeks as poor profit reports dampen investor mood. An analyst suggests the lack of a solid economic base makes it unlikely for any immediate shifts in market trend considering the current weak economic indicators.
The Hang Seng Index fell by 0.2 per cent, closing at 17,651.49. The Hang Seng Tech Index, on the other hand, saw a rise of 0.3 per cent, while the Shanghai Composite Index decreased by 0.3 per cent.
Tech shares were the driving force in reducing the broader market's losses, with Alibaba Group Holding experiencing a 0.8 per cent increase to HK$80.10, Tencent Holdings' shares growing by 0.1 per cent to reach HK$378.20, and Meituan's stock surging 2.2 per cent to HK$118.90.
The recent surge in Hong Kong stocks has stumbled, despite a nearly 4 percent rise in the primary index in August. Both the latest economic figures and company outcomes have not shown signs of accelerating economic and profit growth. This is evident with the manufacturing sector contracting for the fourth consecutive month and banks and developers struggling. However, any downturn might be restrained as the Federal Reserve is expected to implement its initial reduction in interest rates in four years, a decision that would promote investment into Asian markets.
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