Business
Hong Kong Stocks Hover Near Two-Week Low Amid Worsening Earnings and Weak Economic Data: Tech Stocks Offer Silver Lining
Hong Kong's stock market is hovering around its lowest point in two weeks due to underperforming profits affecting investor sentiment. According to an analyst, the lackluster economic data provides no basis for an immediate turnaround in the market trend.
The Hang Seng Index declined by 0.2 per cent, closing at 17,651.49. Meanwhile, the Hang Seng Tech Index saw an increase of 0.3 per cent, and the Shanghai Composite Index fell by 0.3 per cent.
Tech shares were the front-runners in offsetting the wider market's losses, as Alibaba Group Holding saw a 0.8 per cent increase to HK$80.10, Tencent Holdings experienced a slight 0.1 per cent rise to HK$378.20, and Meituan witnessed a significant 2.2 per cent jump to HK$118.90.
The recent revival in Hong Kong's stock market has stumbled, despite a nearly 4% increase in the key index in August. Current economic figures and business outcomes have not shown a quicker expansion in economy and profits. The manufacturing sector has contracted for the fourth consecutive month, and financial institutions and builders are struggling. Nevertheless, any market retreat might be minimal, as the Federal Reserve is expected to implement its first reduction in interest rates in four years, a decision that will encourage investment in Asian markets.
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