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.
Hong Kong stocks followed Asian markets higher, after disappointing U.S. economic growth data reduced expectations of imminent rate hikes by the U.S. Federal Reserve.
The Hang Seng index rose 1.1 percent, to 22,129.14, while the China Enterprises Index gained 1.9 percent, to 9,129.20 points.
Gains in Hong Kong were in line with MSCI’s broadest index of Asia-Pacific shares outside Japan, which rose over 1 percent, hitting its highest level in about a year.
U.S. gross domestic product increased at a 1.2 percent annual rate in the April-June period, less than a half of a 2.6 percent growth rate economists had predicted. That reduced expectations that the Fed will raise interest rates in the next few months.
Most sectors rose, with resources and telecom shares leading the gains.