Hong Kong Stocks Linger Near Two-Week Low Amid Weak Economic Data and Earnings Disappointments

Shares in Hong Kong are being exchanged at almost the lowest levels in two weeks, as declining profit figures put pressure on investor confidence. An analyst indicates that due to the ongoing frailty in economic data, there's no basis for a shift in the current market trend.

The Hang Seng Index fell by 0.2 per cent, ending at 17,651.49. Conversely, the Hang Seng Tech Index saw a gain of 0.3 per cent, while the Shanghai Composite Index pulled back by 0.3 per cent.

Tech shares were the main contributors in offsetting the overall market loss, as Alibaba Group Holding saw a rise of 0.8 per cent to HK$80.10, Tencent Holdings increased by 0.1 per cent to HK$378.20, and Meituan surged 2.2 per cent to HK$118.90.

The resurgence of Hong Kong stocks has stumbled following a near 4% increase in the standard measure in August. Recent economic figures and company outcomes have not shown signs of accelerated economic and earnings growth, as the manufacturing sector contracts for a fourth consecutive month and banks and developers are struggling. However, any potential retreat may be restrained as the Federal Reserve is expected to initiate its first interest rate reduction in four years, a decision that is predicted to trigger investment into Asian markets.