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

Hong Kong shares are trading near their lowest point in two weeks as poor earnings continue to dampen investor mood. An analyst commented that the lackluster economic data provides no basis for a turnaround in the market trend at this moment.

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, while the Shanghai Composite Index pulled back by 0.3 per cent.

Tech shares were the primary drivers in mitigating losses across the wider market. Alibaba Group Holding experienced a 0.8 per cent increase, reaching HK$80.10, while Tencent Holdings saw a slight rise of 0.1 per cent, amounting to HK$378.20. Meanwhile, Meituan made a significant leap of 2.2 per cent, resulting in a price of HK$118.90.

The resurgence of Hong Kong stocks has stumbled, despite a nearly 4% increase in the standard measure in August. Recent economic figures and business outcomes have not suggested any rapid growth in economy and profits, with the manufacturing sector contracting for its fourth consecutive month, and banking and property development sectors struggling. However, any setback could be restrained, as the Federal Reserve is expected to enact its first reduction in interest rates in four years, a step that would stimulate investments into Asian markets.