Business
Hong Kong Stocks Skirt Two-Week Low Amid Deteriorating Earnings and Weak Economic Data; Tech Firms Show Resilience
Hong Kong shares are close to their lowest in two weeks as poor profit reports dampen investor mood. An analyst has stated, "Current economic indicators are underwhelming, providing no basis for a shift in the market trend."
The Hang Seng Index experienced a 0.2 per cent decrease, closing at 17,651.49. However, the Hang Seng Tech Index saw a growth of 0.3 per cent. Meanwhile, the Shanghai Composite Index fell back by 0.3 per cent.
Tech shares were at the forefront of reducing the overall market loss, as Alibaba Group Holding saw a 0.8% increase to HK$80.10, Tencent Holdings experienced a slight 0.1% rise to HK$378.20, and Meituan surged by 2.2% to HK$118.90.
The resurgence of Hong Kong stocks has stumbled, despite a nearly 4% increase in the primary index in August. The most recent financial figures and business outcomes have not shown any signs of accelerated economic and profit growth. This is evident as the manufacturing sector has contracted for a fourth consecutive month, while banking and property development sectors are struggling. However, any regression could be restricted, as the Federal Reserve is expected to announce its initial interest rate drop in four years, a step which could stimulate investments into Asian markets.
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