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

Hong Kong's stock market is hovering around its lowest level in two weeks as poor earnings reports dampen investor mood. An analyst indicated that the current economic data doesn't provide any solid basis for a shift in the market trend.

At the end of trading, the Hang Seng Index saw a decrease of 0.2 per cent, settling at 17,651.49. Meanwhile, the Hang Seng Tech Index experienced a minor gain of 0.3 per cent. On the other hand, the Shanghai Composite Index fell by 0.3 per cent.

Tech shares spearheaded the effort to mitigate the wider market's losses, as Alibaba Group Holding saw a 0.8% increase to HK$80.10. Tencent Holdings also increased by 0.1% to HK$378.20, and Meituan experienced a 2.2% surge, closing at HK$118.90.

The resurgence of Hong Kong stocks has stumbled following nearly a 4% increase in the standard measure in August. Recent economic figures and business outcomes have not pointed to a quicker economic and profit expansion, as the manufacturing sector contracts for the fourth consecutive month and both banks and developers are struggling. Nevertheless, any decline might be restricted as the Federal Reserve is expected to implement its initial interest rate reduction in four years, a decision that is anticipated to stimulate investments into Asian markets.