Nvidia Meledak, Hang Seng Malah Turun

Hong Kong's stock market weakened during Thursday's trading (August 27), despite Nvidia's financial report showing exceptionally strong growth. The Hang Seng Index fell approximately 0.3%, or 84 points, to 25,566, paring back some of the gains recorded in the previous session.

Positive sentiment from the technology sector was actually quite strong after Nvidia's revenue more than doubled to US$96.2 billion in the second quarter. These results reinforced confidence that demand for chips and artificial intelligence infrastructure remains solid, yet this was insufficient to drive a broad market rally in Hong Kong.

Downward pressure stemmed instead from inflation developments in the United States. Headline PCE for July held steady at 3.7% year-on-year, while Core PCE remained at 3.3%, indicating that price pressures persist. These conditions limited expectations for Federal Reserve policy easing and dampened investor appetite for risk assets.

Alibaba also remained in the spotlight after completing an HK$80 billion share placement. Concerns regarding share dilution and heavy spending on AI development continued to weigh on sentiment toward the tech company.

From China, industrial profits rose 17.6% year-on-year during the first seven months of 2026, a slowdown from the 18.7% increase seen in the first half of the year. Stock movements were mixed: Kingboard Laminates rose 6.8%, Z.AI gained 4.2%, and MiniMax added 2.8%, while WuXi XDC fell 2.3% and Xiaomi weakened 1%