China, Hong Kong shares end higher on tech strength; Fed policy in focus
FXI•Tech shares lift mainland benchmarks
Gains were lifted by strength in tech shares, where the ChiNext Composite index .CNT was 2% higher and Shanghai's tech-focused STAR50 index .STAR50 jumped 4.1%.
AI is not a "monopoly of great powers" and the U.S. should work with China to manage risk to create a non-discriminatory development environment, China's top newspaper, the People's Daily, said in a commentary on Wednesday.
U.S.-China diplomatic talks in focus
Separately, U.S. Treasury Secretary Scott Bessent on Tuesday said he would meet with Chinese Vice Premier He Lifeng this weekend ahead of a meeting between President Donald Trump and Chinese President Xi Jinping next week.
Hong Kong shares edge up as Fed decision looms
In Hong Kong, the benchmark Hang Seng index .HSI inched up 0.2%, while the city's tech shares .HSTECH rose 0.8%.
The Fed will raise its interest rate on Wednesday and deliver at least one more hike by the end of March, a Reuters poll showed.
"The key question is whether the Fed presents today's expected hike as a limited adjustment to reinforce inflation credibility or the beginning of a broader tightening cycle," analysts at Commerzbank said in a note.
"A surprise hold could push front-end yields lower but potentially lift longer-term yields if investors interpret the Fed as insufficiently hawkish on inflation, steepening the yield curve."
