Hong Kong stocks closed in negative territory on Tuesday, with nervous investors keeping a close eye on debt talks in Washington as US lawmakers battle to hammer out a deal to lift the country's borrowing limit to avert a default.

The Hang Seng Index sank 1.3 percent, or 246 points, to 19,431.

The Shanghai Composite Index shed 1.5 percent, or 50 points, to 3,246, while the Shenzhen Composite Index slipped 1 percent, or 20 points, to 2,018. (AFP)