China, Hong Kong stocks flat as markets eye trade war developments

China and Hong Kong shares were largely flat in choppy trading on Tuesday as investors grappled with uncertainty over the future of U.S.-China relations.

** At the midday break, the Shanghai Composite index pared early gains to edge 0.1% lower at 3,856.45 points. ** China's blue-chip CSI300 index also shed gains from the opening hour to trade 0.4% lower.

** Sentiment remained cautious as investors weighed uncertainties around U.S.-China trade talks. Officials from both countries said on Monday that they have reached a framework deal on TikTok pending confirmation in a Friday call between U.S. President Donald Trump and his Chinese counterpart Xi Jinping. ** That follows China's accusation that Nvidia violated the country's anti-monopoly law on Monday, the latest escalation in its trade war with the United States.

** "Stock indexes are likely to remain range-bound in the short term" as markets focus on U.S.-China trade talks and the Fed's meeting later this week, Nanhua Futures analysts said in a note to clients. ** However, downside risks should be limited, they added, citing strong global market performance boosting risk appetite and continued loose liquidity conditions.

** Weighing on the onshore markets, the rare-earths sector index weakened 2.2% on Tuesday. The financial sector sub-index dropped 0.5% and the consumer staples sector slipped 1%. ** In Hong Kong, the Chinese H-share index listed in Hong Kong, the Hang Seng China Enterprises Index edged up 0.1% to, while the Hang Seng Index was also up 0.1% at 26,466.45.

** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.6%, while Japan's Nikkei index was up 0.3%.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)