Hong Kong Stocks Hover Near Two-Week Low Amid Weak Economic Data and Deteriorating Earnings, Tech Stocks Show Resilience

Shares in Hong Kong are trading close to their lowest in two weeks as declining profits dampen investor mood. As per an analyst's statement, the weak economic indicators currently provide no basis for a 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 0.3 per cent increase and the Shanghai Composite Index saw a 0.3 per cent decrease.

Tech stocks were the primary drivers in mitigating the overall market loss, with Alibaba Group Holding experiencing a 0.8 per cent hike to HK$80.10, Tencent Holdings seeing a 0.1 per cent increment to HK$378.20, and Meituan witnessing a 2.2 per cent surge to HK$118.90.

The resurgence of Hong Kong's stock market has stumbled, despite seeing nearly a 4% increase in the standard measure in August. Recent financial statistics and business outcomes have not suggested any acceleration in economic or earnings growth, as the manufacturing sector contracts for the fourth consecutive month and banks and developers struggle. However, any downturn might be restricted, considering the Federal Reserve is poised to enact its first interest rate reduction in four years, a step anticipated to boost investments in Asian markets.