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

Hong Kong's stock market is hovering around its lowest level in two weeks due to worsening profit figures dampening investor mood. According to an analyst, the current economic indicators continue to be unsatisfactory, providing no basis for a shift in market trajectory.

The Hang Seng Index saw a decrease of 0.2 per cent, closing at 17,651.49. Meanwhile, the Hang Seng Tech Index experienced a 0.3 per cent increase, and the Shanghai Composite Index fell by 0.3 per cent.

Tech stocks were the leading performers, helping to mitigate the overall market loss. Alibaba Group Holding saw a 0.8 per cent increase, reaching HK$80.10, while Tencent Holdings experienced a modest growth of 0.1 per cent to HK$378.20. Moreover, Meituan made a significant leap, rising 2.2 per cent to HK$118.90.

The recent recovery of the Hong Kong stock market has stumbled, despite the nearly 4% increase in the primary measure in August. The most recent economic figures and business outcomes have not shown signs of accelerated economic or profit growth. The manufacturing sector has contracted for the fourth consecutive month, and banks and developers are struggling. However, any downturn might be restricted, as the Federal Reserve is expected to make its first reduction in interest rates in four years, a move predicted to prompt investment in Asian markets.