China and Hong Kong Stocks Steadfast Amid Asian Market Fluctuations

China and Hong Kong stocks held steady despite modest losses in Asia. The Shanghai Composite and CSI300 indices reached peak levels since early April, ahead of the Policburo meeting addressing tariff issues. Investor confidence remained strong, although competitive pressures impacted companies like JD.com and Meituan.

In a surprising turn, China and Hong Kong stocks resisted the broader downturn across Asia on Tuesday, as Wall Street's slip overnight failed to shake investor confidence. The Shanghai Composite Index edged up 0.3% to 3,299.76 points, while the CSI300 index was virtually unchanged, clinging near its highest since early April.

This resilience comes just before the highly anticipated China Politburo meeting, where crucial decisions on tariff management and economic strategies are expected. Analysts at Citi suggest that the meeting could provide new clarity on market policies, potentially influencing investor sentiment significantly.

Hong Kong's Hang Seng Index bounced back from early losses to close 0.8% higher, also reaching its highest level since early April. However, the upward trend was countered by sharp declines in major companies like JD.com and Meituan, both seeing a 6.6% drop due to intensifying competition. Despite these setbacks, the general outlook across Asia remained stable amid a 'mild risk-off' sentiment noted by regional market strategists.

(With inputs from agencies.)