Hong Kong Stocks Hover Near Two-Week Low Amid Weak Economic Data and Dwindling Earnings, Despite Tech Sector Gains

Hong Kong shares are operating close to a two-week low due to declining profits impacting investor mood. An analyst commented, "The economic indicators continue to be poor, providing no basis for a shift in the current market trend."

The Hang Seng Index fell slightly by 0.2 per cent, ending at 17,651.49. Conversely, the Hang Seng Tech Index saw a modest increase of 0.3 per cent, while the Shanghai Composite Index experienced a decrease of 0.3 per cent.

Tech shares were the main contributors in reducing the overall market loss, with Alibaba Group Holding experiencing a 0.8 per cent increase, taking its value to HK$80.10. Tencent Holdings also saw a minor increase of 0.1 per cent, bringing its price to HK$378.20, while Meituan saw a substantial 2.2 per cent surge, reaching HK$118.90.

The resurgence of stocks in Hong Kong has stumbled despite nearly a 4% increase in the critical indicator in August. Recent economic reports and business outcomes have not shown a quicker pace in economic and profit growth. The manufacturing sector has contracted for the fourth consecutive month, and banks and developers are struggling. However, the fallback could be minimal as the Federal Reserve is expected to make its initial interest-rate cut in four years, a decision that will stimulate an influx to Asian markets.