Business
Hong Kong Stocks Hover Near Two-Week Low Amid Weak Economic Data and Deteriorating Earnings: Tech Stocks Show Resilience
Trading of stocks in Hong Kong hovers around a two-week low due to worsening profit reports that negatively impact market sentiment. An analyst points out that the weak economic figures at present provide no basis for a turnaround in the market trend.
The Hang Seng Index experienced a minor decrease of 0.2% ending at 17,651.49 at the time of closure. Meanwhile, the Hang Seng Tech Index saw a slight increase of 0.3%, while the Shanghai Composite Index fell by 0.3%.
Shares in technology were the main contributors in mitigating the overall market loss. Alibaba Group Holding saw an increase of 0.8 per cent, reaching HK$80.10, while Tencent Holdings experienced a slight growth of 0.1 per cent, hitting HK$378.20. Additionally, Meituan surged by 2.2 per cent, ending at HK$118.90.
The recent recovery in Hong Kong's stock market has stumbled, despite nearly a 4% rise in the main index in August. Current economic reports and business earnings have not shown a quickened pace in economic and profit growth. The manufacturing sector has contracted for the fourth consecutive month and banks and developers are struggling. However, the setback could be restrained as the Federal Reserve is expected to implement its first reduction in interest rates in four years, a decision that could encourage investments into Asian markets.
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