China stocks flat as investors gauge global trade tensions
At close, the Shanghai Composite index held its ground at 3,454.79, hovering near a three-month high. China's blue-chip CSI300 index climbed less than 0.1%.
Defensive sectors helped lift the markets onshore, with the banking sector sub-index up 0.8% while liquor distiller sector advanced 0.6%.
Tech shares weighted on the markets, with the semiconductor sector and AI-related shares losing around 2% each. Hong Kong shares edged higher as traders returned from a local holiday. The benchmark Hang Seng Index added 0.6% at 24,221.41, while the Hang Seng China Enterprises Index, which tracks Chinese H-shares listed in the city, gained 0.5%.
The local property sub-index added 2%, helping boosting the markets. Cash-strapped property giant New World Development surged nearly 10% after closing $11.2 billion refinancing deal.
Caution prevailed across the region as investors await developments in trade talks, after US President Donald Trump said he was not considering extending the July 9 deadline for countries to negotiate trade deals with the United States.
The US and India are nearing a deal that would lower tariffs on American imports to the South Asian country, while doubt has been cast on a deal with Japan.
Around the region, MSCI's Asia ex-Japan stock index edged up 0.1%, while Japan's Nikkei index was down 0.6%. BlackRock Investment Institute said they are neutral on Chinese equities in the second half due to trade policy and stimulus uncertainties, but see selective opportunities in priority sectors that could receive targeted support.
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