Hong Kong and mainland stocks ended lower on Tuesday, led by property companies, as investors awaited guidance from minutes of the US Federal Reserve's latest meeting and fresh domestic economic data.

The benchmark Hang Seng Index closed down 119 points, or 0.5 percent, at 23,496 on turnover of HK$319.71 billion.

The tech index dropped 34 points, or 0.8 percent, to 4,507 while the China enterprises index fell 42 points, or 0.5 percent, to 7,770.

Property shares were the main drag, with a sub-index tracking the sector declining 3.6 percent.

The World Bank projected China's economic growth would ease to 4.4 percent in 2026 and to 4.3 percent in 2027 as the property sector continues to adjust to lower housing demand and consumers remain cautious.

Up north, the Shanghai Composite Index closed down 51 points, or 1.26 percent, at 3,990 on turnover of 1.2 trillion yuan.

The Shenzhen Component Index fell 191 points, or 1.24 percent, to 15,225 on turnover of 1.385 trillion yuan while the ChiNext Index dropped 36 points, or 0.94 percent, to 3,911 on turnover of 622.03 billion yuan.

Investors are awaiting a string of domestic economic data due for release in the coming week, hoping for a clearer picture of the broader economy.

China is due to report June inflation data on Thursday, followed by second-quarter gross domestic product figures and other activity indicators next Wednesday.

"While high-frequency activity indicators likely stayed soft in June, we expect Q2 GDP growth to prove more resilient than monthly data may suggest, supported by its supply-side nature, as well as likely solid services consumption and tech capex during the period," said Serena Zhou, senior China strategist at Mizuho Securities.

"We therefore expect Beijing's policy support to remain measured and targeted, with the policy mix skewed toward fiscal measures."

In overseas markets, focus is on minutes of the Federal Open Market Committee's June meeting on Wednesday for clues about the US rate outlook.

Beijing and Hong Kong authorities announced a range of measures to bolster currency, bond and gold trading in Hong Kong, stepping up efforts to establish the city as a leading offshore yuan centre amid heightened geopolitical tensions.

Investor thinking on Chinese assets is changing, as steady returns through the turbulence of the Iran war and AI frenzy show how China has broken step with global markets, carving out a niche as a sandbag against volatility.

In Tokyo, the Nikkei share average plunged 1,480 points, or 2.12 percent, to close at 68,256 as semiconductor-related heavyweights fell after a drop in South Korea's Samsung Electronics.

In Seoul, the Kospi tumbled 395 points, or 4.9 percent, to end the day at 7,656, with the benchmark index falling 8.2 percent at one point and triggering circuit breakers, as chipmakers slumped on doubts over whether record earnings tied to AI could hold up. (Reuters/Xinhua)



Edited by Tony Sabine