China, Hong Kong stocks steady as weak export data counters global rally on US-Iran talks

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 .HSI closed up 0.3%, while the Shanghai Composite Index .SSEC finished flat. China's blue-chip CSI300 Index .CSI300 surrendered gains to end 0.3% lower.

Asian equities .MIAPJ0000PUS rebounded over 1% after overnight strength on Wall Street, as hopes for a diplomatic solution to the Iran war lifted sentiment.

U.S. 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 $100 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 .STARCHIP, drugmakers .CSI932217 and logistics stocks .CSI930716 gained, but new energy vehicle producers .CSI930716, battery makers .CSI930716 and commodity companies .CSI000979 declined.

In Hong Kong, biotech firms .HSIDI, tech plays .HSTECH and media companies .HSME jumped.

Energy .HSCIE and materials .HSCIM sectors were among the laggards.

-Shanghai Newsroom/Reuters