SHANGHAI: China and Hong Kong benchmarks held steady on Wednesday, lagging global markets that gained on hopes for a diplomatic end to the Iran war, as weak domestic exports data weighed.
Hong Kong’s benchmark Hang Seng Index closed up 0.3 percent, while the Shanghai Composite Index finished flat. China’s blue-chip CSI300 Index surrendered gains to end 0.3 percent lower.
Asian equities rebounded over 1 percent after overnight strength on Wall Street, as hopes for a diplomatic solution to the Iran war lifted sentiment.
US President Donald Trump said talks with Iran could resume in Pakistan over the next two days, after breaking down over the weekend. Pakistani and Iranian officials also said negotiations could restart.
“With Brent crude prices holding mostly below USD100 per barrel the past week, markets have been holding out for a diplomatic solution,” DBS analyst Philip Wee said in a note. “For now, the worst oil shock scenario appears to be partially contained.”
Highlighting the impact of the war, the International Monetary Fund cut its global growth outlook on Tuesday due to energy price spikes.
Sentiment in China was checked by data showing Chinese exports slowed sharply in March.
In China, chipmakers, drugmakers and logistics stocks gained, but new energy vehicle producers, battery makers and commodity companies declined.
In Hong Kong, biotech firms, tech plays and media companies jumped.
Energy and materials sectors were among the laggards.
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