Business
Hong Kong Stocks Hover Near Two-Week Low Amid Weak Economic Data and Deteriorating Earnings; Tech Stocks Show Resilience
Hong Kong shares are trading close to a two-week low as declining profits impact market mood.
'Current economic indicators are feeble, providing no basis for an upturn in the market,' says the analyst.
'Presently, economic data remains frail, hence there is no groundwork for a market trend shift,' the analyst mentions.
The Hang Seng Index experienced a slight fall of 0.2 per cent, closing at 17,651.49. Meanwhile, the Hang Seng Tech Index saw a minor rise of 0.3 per cent and the Shanghai Composite Index pulled back by 0.3 per cent.
Tech shares were the main driving force in reducing the overall market loss, as Alibaba Group Holding saw a 0.8 per cent increase, reaching HK$80.10, Tencent Holdings slightly rose by 0.1 per cent to HK$378.20, and Meituan experienced a significant 2.2 per cent surge to HK$118.90.
The recent upswing in Hong Kong's stock market has stumbled, despite nearly a 4% increase in the main index in August. Recent economic statistics and business outcomes have not suggested a quicker pace of economic and earnings growth. The manufacturing sector has contracted for four consecutive months, and banks and builders are struggling. However, any potential decline might be restrained due to the Federal Reserve's probable first interest-rate cut in four years, which could stimulate investment in Asian markets.
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