Hong Kong Stocks Hover Near Two-Week Low Amid Weakening Earnings and Gloomy Economic Data

Hong Kong's stock exchange is hovering close to its lowest point in two weeks, as declining profits impact investor mood. An analyst stated, "The current economic figures remain poor, offering no basis for a turnaround in the market's trajectory."

At the end of trading, the Hang Seng Index fell by 0.2 per cent, closing at 17,651.49. Meanwhile, the Hang Seng Tech Index saw a slight increase of 0.3 per cent. On the other hand, the Shanghai Composite Index decreased by 0.3 per cent.

Tech shares were the driving force in mitigating the broader market's losses, with Alibaba Group Holding seeing a 0.8 per cent increase to HK$80.10, Tencent Holdings experiencing a 0.1 per cent rise to HK$378.20, and Meituan surging 2.2 per cent to HK$118.90.

The surge in Hong Kong's stock market has stumbled after nearly a 4% increase in the main index in August. Recent economic figures and business outcomes have not suggested a quickened pace of economic and earnings growth, as the manufacturing sector contracts for the fourth consecutive month and banks and developers struggle. However, any decline could be restrained as the Federal Reserve is expected to implement its first reduction in interest rates in four years, a step that will stimulate investment into Asian markets.