Hong Kong stocks ended slightly lower on Tuesday as fading expectations for progress in U.S.-Iran negotiations and caution ahead of U.S. inflation data weighed on sentiment.
The Hang Seng Index shed 0.2%, or 58.93 points, to close at 26,347.91, while the Hang Seng China Enterprises Index barely moved in negative territory to finish at 8,882.37.
U.S. President Donald Trump said on Monday that a ceasefire with Iran was "on life support" after Tehran's response to a U.S. proposal highlighted divisions between the two sides.
Tehran has called for compensation for war-related damage, an end to the U.S. naval blockade, assurances against further attacks, and the resumption of Iranian oil exports.
Markets are also closely watching Trump's visit to China, which begins on Wednesday.
In corporate news, Hengrui Pharmaceuticals (HKG:1276, SHA:600276) advanced nearly 5% in Hong Kong after signing a drug development deal with Bristol Myers Squibb worth up to $15.2 billion.