Hong Kong Stocks Hover Near Two-Week Low Amid Weak Economic Data and Deteriorating Earnings, Tech Stocks Offer Slight Respite

Hong Kong shares are hovering around their lowest levels in two weeks as disappointing profit reports dampen investor confidence. According to an analyst, the weak economic indicators offer no basis for an expected shift in the current market trend.

The Hang Seng Index fell by 0.2% ending at 17,651.49. The Hang Seng Tech Index, however, rose by 0.3%. Meanwhile, the Shanghai Composite Index saw a decline of 0.3%.

Tech stocks were the main driving force in mitigating the overall market loss, as Alibaba Group Holding saw an increase of 0.8 per cent reaching HK$80.10, Tencent Holdings rose 0.1 per cent to HK$378.20, and Meituan experienced a significant surge of 2.2 per cent to HK$118.90.

The resurgence of Hong Kong stocks has stumbled after nearly a 4% rise in the standard measure in August. Recent economic figures and business outcomes have not shown an acceleration in economic and earnings growth, as the manufacturing sector contracts for the fourth consecutive month and banks and developers are struggling. However, any drawback might be restrained considering the Federal Reserve is expected to implement its initial reduction in interest rates in four years, a strategy that will encourage investments into Asian markets.