Hong Kong shares ended little changed on Tuesday, taking a breather after hitting eight-month in highs the previous session, as falls in IT and utility stocks offset gains in energy and property plays.
The Hang Seng index fell 0.1 percent to 22,465.61 points, while the China Enterprises Index gained 0.3 percent to 9,301.17 points.
Markets were unfazed by data showing that China’s consumer price inflation eased to a six-month low, even as a long decline in producer prices continued to moderate, easing strains on some companies’ balance sheets, particularly in heavy industries.
IT shares fell 0.4 percent and utility stocks 0.2 percent, offsetting gains in energy and property plays.
Energy shares rose 0.6 percent, while property shares advanced 0.5 percent.
Developer China Evergrande Group rose 0.9 percent, extending gains to the fourth straight day. The stock hit a three-month high after the company said it had bought a stake in rival Vanke and raised its stake in goods trading company Langfang Development Co Ltd to 15 percent.
European shares were little changed in thin trading as investors considered the implications of a possible increase in U.S. interest rates after Federal Reserve Chair Janet Yellen said a hike is likely in the coming months.
The Stoxx Europe 600 Index added 0.1 percent to 350.14 at the close of trading, after briefly rising as much as 0.2 percent, with automakers rising the most. The number of shares changing hands on the gauge was about 74 percent lower than the 30-day average. Financial markets in the U.S. and U.K. were shut for holidays.
Yellen said late Friday that an improving American economy would probably warrant another increase in borrowing costs “in the coming months,” a view also recently expressed by several regional Fed chiefs. She was speaking after data showed U.S. growth picked up more in the first quarter than was previously estimated. Traders have increased the odds of an interest-rate increase in June to 36 percent and to 59 percent for July.