Hong Kong Stocks Hover Near Two-Week Low Amid Weak Economic Data and Dwindling Earnings: Tech Sector Offers Glimmer of Hope

The trading of stocks in Hong Kong is approaching a two-week low due to worsening profit reports impacting investor mood. An analyst highlighted that the current economic statistics remain poor, providing no basis for a potential turnaround in the market trend.

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 slight increase of 0.3 per cent, and the Shanghai Composite Index fell by 0.3 per cent.

Tech shares were the predominant winners helping to offset the overall market decline, with Alibaba Group Holding increasing by 0.8 per cent to HK$80.10, Tencent Holdings slightly advancing by 0.1 per cent to HK$378.20, and Meituan surging by 2.2 per cent to HK$118.90.

The recent surge in Hong Kong's stock market has stumbled after an almost 4% increase in the primary index in August. The most recent financial data and business results have not shown quickened economic and profit expansion, as the manufacturing sector contracts for the fourth month in a row and banks and developers struggle. Regardless, any downturn might be restricted as the Federal Reserve is expected to make its first interest rate cut in four years, a strategy that will encourage investment into Asian markets.