Hong Kong Stocks Hover Near Two-week Low Amid Weakening Earnings and Sluggish Economic Data

Hong Kong's stock market is hovering around its lowest point in two weeks due to worsening profit reports impacting investor confidence. The current economic data doesn't provide any basis for a turnaround in the market trend, according to analysts.

The Hang Seng Index saw a slight decrease of 0.2 per cent, closing at 17,651.49. On the other hand, the Hang Seng Tech Index experienced a minor gain of 0.3 per cent. Meanwhile, the Shanghai Composite Index pulled back by 0.3 per cent.

Tech shares were the primary drivers in mitigating the broader market's losses. Alibaba Group Holding increased by 0.8 per cent, reaching HK$80.10, while Tencent Holdings saw a slight rise of 0.1 per cent to HK$378.20. Additionally, Meituan experienced a significant surge of 2.2 per cent, ending at HK$118.90.

The recent surge in Hong Kong stocks has stumbled following nearly a 4% rise in the main index in August. The most recent financial figures and company results have not suggested an acceleration in economic and profit growth, as the manufacturing sector contracts for a fourth consecutive month and banks and builders struggle. However, any downturn could be restrained as the Federal Reserve is expected to implement its first reduction in interest rates in four years, a decision that will encourage capital inflows to Asian markets.