Hong Kong Stocks Near Two-Week Low Amid Deteriorating Earnings: Tech Stocks Offer Respite Despite Weak Economic Outlook

Hong Kong's stock exchange is close to a two-week low due to poor earnings having a negative impact on market mood. An analyst stated, "The economic indicators continue to be underwhelming at present, providing no basis for a shift in the current market trend."

The Hang Seng Index saw a decline of 0.2 per cent, closing at 17,651.49. Meanwhile, the Hang Seng Tech Index experienced a 0.3 per cent increase, while 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 increased by 0.8 per cent, reaching HK$80.10, while Tencent Holdings experienced a slight uptick of 0.1 per cent to HK$378.20, and Meituan saw a significant boost of 2.2 per cent, hitting HK$118.90.

The resurgence of Hong Kong stocks has stumbled, following a nearly 4% increase in the key index in August. The most recent economic figures and business outcomes have not shown a quicker pace of economic and profit expansion, as the manufacturing sector has contracted for four consecutive months, and banks and developers are struggling. However, any decline might be restrained since the Federal Reserve is anticipated to make its first interest rate reduction in four years, a step that will stimulate investments into Asian markets.