Equities stuttered on Thursday as investors await fresh developments in trade talks, with US partners looking to reach deals to avoid American President Donald Trump's tariff blitz, while oil extended losses on hopes for an Iran nuclear deal.

In Hong Kong, the benchmark Hang Seng Index closed 187.49 points, or 0.79 percent, down for the day at 23,453.16.

The Hang Seng China Enterprises Index dropped 0.97 percent to end at 8,509.67 while the Hang Seng Tech Index slipped 1.56 percent to close at 5,297.84.

Chinese stocks closed lower, with the benchmark Shanghai Composite Index down 0.68 percent to 3,380.82.

The Shenzhen Component Index closed 1.62 percent lower at 10,186.45.

Shares related to synthetic biology, food, and ports led gains, while those in the software development and computing power sectors were among the biggest losers.

The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 1.91 percent to close at 2,043.25.

With excitement from the China-US detente running out of legs, the search is on for fresh catalysts to drive a rally that has pushed markets back above the levels seen before Trump's April 2 "Liberation Day" bombshell.

News that Beijing was suspending some non-tariff countermeasures on US entities for 90 days following the superpowers' weekend truce did little to inject much more enthusiasm.

With the tariffs crisis calmed for now, dealers can turn their attention to hard economic data, hoping for an idea about the initial impact of Washington's trade policies.

After figures on Tuesday showing US inflation came in a little below forecasts in April, eyes are on wholesale prices and retail sales due later on Thursday, as well as earnings from retail giant Walmart.

However, analysts pointed out that the real impact would not be seen until May's figures are released and warned that there were still plenty of bumps in the road ahead.

"The trade truce may hold for now, but the tariffs announced – many still around 30 percent – are not disappearing," said Charu Chanana, chief investment strategist at Saxo.

"These are 'sticky' policies that can reshape supply chains, corporate margins, and even inflation. In fact, the market is now preparing for a second shock: weaker economic and earnings data in the third quarter as tariffs bite."

She added that "the muted market reaction the day after the truce suggests investors may be digesting the idea that 'the best news may already be out'". (AFP/Xinhua)