China stocks edge higher, HK shares end down

Hong Kong's stock market closed lower on Wednesday, with the Hang Seng Index falling 0.98 percent to 24,315 points. The Hang Seng China Enterprises Index slipped 1.14 percent to 8,171, while the Hang Seng Tech Index dipped 1.41 percent. In mainland China, the Shanghai Composite Index bounced back from earlier losses, ending up 0.5 percent, and the blue-chip CSI300 index rose 0.4 percent.

The Shenzhen Component Index gained 1.32 percent, with tech shares leading the gains. The ChiNext Composite index, a start-up board, increased 3.1 percent, and Shanghai's tech-focused STAR50 index climbed 2.8 percent. Regional equity markets were trading in a narrow range, as traders grappled with expectations of interest rate hikes and tensions in the oil market.

US consumer inflation data came in hotter than anticipated, and hawkish policymakers increased expectations of faster rate hikes, lifting bets on quicker rate hikes and putting pressure on A-share valuations. Analysts at Nanhua Futures noted that this recent market recovery has been driven by domestic measures and a temporary easing of overseas uncertainties, but the strength and longevity of these factors appear limited.

While market sentiment has improved, investors remain cautious, and stock indexes are expected to trade within a narrow range in the near term. Meanwhile, oil prices rose after sliding to two-month lows the previous day, as the market oscillated between hopes of de-escalation in the Iran conflict and concerns over ongoing attacks on shipping in the Strait of Hormuz.