Business
Hong Kong Stocks Linger Near Two-Week Low Amid Weak Economic Data and Deteriorating Earnings: Tech Stocks Offer Silver Lining
Hong Kong's share market hovers around a near two-week low as worsening profit results dampen investor mood. Analysts suggest that the economic indicators remain poor, providing no basis for a turnaround in the market trend.
The Hang Seng Index fell by 0.2 per cent, closing at 17,651.49. Meanwhile, the Hang Seng Tech Index saw a 0.3 per cent increase, while the Shanghai Composite Index pulled back by 0.3 per cent.
Tech shares were the primary drivers in mitigating the wider market's losses, as Alibaba Group Holding saw an increase of 0.8 per cent, closing at HK$80.10, Tencent Holdings experienced a slight boost of 0.1 per cent, ending at HK$378.20, and Meituan surged by 2.2 per cent to finish at HK$118.90.
The resurgence in Hong Kong's stock market has stumbled, despite nearly a 4% increase in the standard index in August. Recent economic figures and business outcomes haven't shown a quickened pace in economic and earnings growth. The manufacturing sector has seen a contraction for the fourth consecutive month, with banks and property developers also experiencing difficulties. However, any potential setbacks could be restrained, given that the Federal Reserve is expected to implement its first reduction in interest rates in four years, a decision that would stimulate investment in Asian markets.
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