Hong Kong Stocks Near Two-Week Low Amid Weak Economic Data and Deteriorating Earnings: Tech Stocks Offer a Silver Lining

Hong Kong's stock market is close to a two-week low due to worsening profit figures dampening investor mood. An analyst suggests that the lack of any solid groundwork for a positive shift in the market is due to the persisting weak economic indicators.

The Hang Seng Index experienced a decrease of 0.2 per cent, closing at 17,651.49. Meanwhile, the Hang Seng Tech Index saw a slight increase of 0.3 per cent, while the Shanghai Composite Index fell by 0.3 per cent.

Tech shares were the main drivers in offsetting the overall market decline, with Alibaba Group Holding increasing by 0.8 per cent to a value of HK$80.10, Tencent Holdings experiencing a slight growth of 0.1 per cent to HK$378.20, and Meituan surging by 2.2 per cent to HK$118.90.

The resurgence of Hong Kong stocks has stumbled, following a nearly 4% increase in the standard measure last August. Current financial figures and business outcomes have not shown any signs of accelerated economic or earnings growth, as the manufacturing sector contracts for the fourth consecutive month while banks and builders are struggling. However, any decline might be restricted due to the anticipated first reduction in interest rates by the Federal Reserve in four years, a step that could drive investment into Asian markets.