Chinese and Hong Kong stocks were nearly flat at the close, with defensive stocks offsetting weakness in technology shares. Investor sentiment appeared cautious as markets entered a lull between earnings seasons and awaited confirmation of the schedule for a China-U.S. leaders' meeting.
Mainland Chinese stocks closed lower, with the Shanghai Composite Index at 3,979.89, down 0.16% from the previous day. The CSI 300 Index, comprising major stocks, fell 0.29%, while Shenzhen's ChiNext and Shanghai's STAR Market fell 1.3% and 2.2%, respectively, weighing on the market.
Defensive sectors, meanwhile, attracted buying and supported the market. The CSI Liquor Index rose 2.5%, the consumer staples sector gained 1.2% and the banking sector climbed 1.9%.
In Hong Kong, the Hang Seng Index fell 0.9% and the Hang Seng Tech Index declined 1.5%. Concerns spread after online fast-fashion retailer SHEIN fell on its first day of trading.
Market participants said the market was in a lull between earnings announcements and awaiting confirmation of the schedule for a China-U.S. leaders' meeting. Some also said the reassessment of interest-rate outlooks would continue as markets responded to the Federal Reserve's shift toward a hawkish stance.