China and Hong Kong Stocks Steady Amid Asia's Modest Losses

China and Hong Kong stocks remained stable despite Wall Street's overnight fall. The Shanghai Composite index rose by 0.3%, and the banking sector led gains. Hong Kong's Hang Seng Index slipped slightly. Regional stocks experienced minor losses, but investor focus remains on Sino-U.S. trade tensions.

On Tuesday, stocks in China and Hong Kong demonstrated resilience against a backdrop of moderate losses across Asia, as Wall Street saw declines overnight.

By midday, Shanghai's Composite index gained 0.3% to stand at 3,301.59 points. Sectoral leaders included banking and liquor stocks, which rose by 0.7% and 0.4%, respectively. However, Hong Kong's Hang Seng Index had a marginal loss, while the Tech Index fell by 0.5% as e-commerce giant JD.com and delivery platform Meituan witnessed a significant 6.6% decline amid intensifying competition.

China's market support came from both 'national team' and private investors, aligning forces to purchase during the dip amid ongoing Sino-U.S. trade tensions. Though Japan's Nikkei and other Asian markets saw small losses, the overall sentiment remains only mildly risk-averse, with attention focused on upcoming U.S. tariff discussions, according to APAC strategist Wee Khoon Chong at BNY.

(With inputs from agencies.)