Hong Kong stocks closed in the red on Tuesday, reversing morning gains, as investors nervously await Federal Reserve boss Jerome Powell's testimony to US lawmakers, hoping for a better grasp of the bank's plans for fighting inflation.

The Hang Seng Index fell 0.3 percent, or 68 points, to 20,534.

The Shanghai Composite Index sank 1.1 percent, or 36 points, to 3,285, while the Shenzhen Composite Index dropped 2 percent, or 43 points, to 2,108. (AFP)