China’s stocks flat as defensive gains offset tech weakness

China's stocks remained largely unchanged on Tuesday as gains in defensive sectors offset weakness in technology shares. The Shanghai Composite index closed up 0.03% at 3,987.56 points, while the blue-chip CSI300 index slipped 0.06%. Tech shares, particularly the ChiNext Composite Index and the STAR50 Index, pulled the market down, with the former falling 0.9% and the latter 1.5%.

Semiconductor stocks also faced pressure, with the CSI Semiconductor Index down 2%. However, defensive sectors managed to provide some relief, with the CSI Liquor Index up 2.7% and the consumer staples sector rising by 1.6%. Banking stocks, meanwhile, gained 1.1%. Analysts at Hwabao Securities remain cautious about market sentiment, expecting the market to stay range-bound as investors await further developments, including the confirmation of a meeting between Chinese and US leaders and the Federal Reserve chair's hawkish remarks.

In Hong Kong, the Hang Seng Index fell 1% at 25,310.88, and the Hang Seng Tech Index declined 0.8%. Shares of online fast-fashion retailer Shein (0625) saw a 8% drop in their debut trading, as investors remain wary of the impact of delays in its listing and concerns over its competitive advantages. Globally, bond yields reached record highs due to selling pressure, while tensions in the Middle East led to oil prices surpassing $90 a barrel.