Hong Kong stocks closed higher on Wednesday as a jump in shares of telecom operator China Mobile Ltd offset regional weakness in financials and energy-related counters, while Shanghai shares ended lower for a third straight session. The Hang Seng Index briefly hit a six-session high at the open before easing back to close up 0.5 percent at 22,003.7 points.
China Mobile gained 3 percent to close at a four-month high on market speculation that it could begin to offer Apple Inc's iPhone as soon as September. Apple's chief financial officer said on Tuesday that iPhone sales were 'on fire' in Asia, helping it post market-beating profits that boosted many tech and telecom stocks across much of Asia on Wednesday.
The Hang Seng underperformed its regional peers, however, due largely to a drop in shares of Chinese offshore oil producer CNOOC Ltd, which lost more than 3 percent in volume that was nearly triple its 30-day average.
Nomura downgraded the stock to "neutral" from "buy", saying the company's oil and gas production estimates for 2011 may be overly optimistic.
Zijin Mining Group Co Ltd suffered its biggest one-day plunge in a year, on news that one of its shareholders was planning a share placement at a discount and after gold prices retreated from a peak.
The mainland gold miner, with a market cap of $17.7 billion, closed down almost 6 percent in volumes exceeding 13 times its 30-day volume. IFR reported on Wednesday that a Zijin shareholder was selling 338 million shares at a discount, raising about HK$1.47 billion ($189 million).
Before Wednesday's drop, Zijin had gains of more than 24 percent, mainly due to rising gold prices, since hitting 2011 lows in mid-June.
The Shanghai Composite Index lost ground for a third straight session, easing 0.1 percent to 2,794.2 points, below its psychological 2,800 level.
Resources names led losses on profit-taking, hit by fears some Chinese local government may default on their debt and the uncertain global economic outlook. Shares of coal miners also fell as domestic prices leveled off. Shanxi Coking Co dropped 2.4 percent and Shanxi Meijin Energy Co declined 3.4 percent.