Hong Kong stocks closed 0.33 percent lower on Tuesday after hitting an intraday, eight-month high as investors took some profits ahead of a widely expected rate hike in the United States. The blue-chip Hang Seng Index fell 44.82 points to close at 13,516.67, off an intra-session peak of 13,579.40 - a level last seen on March 8. Turnover at HK$18.1 billion (US $2.3 billion) was well ahead of Monday's HK$16.9 billion.
Technical resistance at 13,500-13,600 also kept the index from making further headway, said Peter Lai, a director at DBS Vickers.
"So we'll probably have to wait for a moment to accumulate sufficient momentum before we can break through this resistance."
Lai said the market was watching developments in Iraq and near-term oil price concerns would likely see the market continue to consolidate.
"I believe after some kind of correction at around 13,100 to 13,300, with some kind of good news, we can break through 13,600 without any problem."
Hong Kong traders said they were eyeing further fund flows into the territory as investors speculate on a possible yuan revaluation.
"There have been hefty gains recently, so this is a technical pullback, but it doesn't mean the market is turning south. We still see a lot of hot money in the market," said Herbert Lau, research director at Celestial Asia Securities.
China enterprise stocks, also known as H-shares, outperformed Hong Kong blue chips, rising 1.01 percent to 4,708.69.