SHANGHAI: Chinese stocks closed down on Tuesday as traders awaited key inflation data from major economies this week for clues on the path for interest rates, and weighed the effectiveness of China’s latest housing policy.

The US core personal consumption expenditures price index, the Federal Reserve’s preferred inflation gauge, is due on Friday and will be the biggest focus for the market. Expectations are for the index to hold steady on a monthly basis.

Meanwhile, China’s commercial hub Shanghai lowered the minimum downpayment ratios for home buyers and relaxed some home purchase restrictions, after the country lowered the national level in a market stabilising effort earlier this month.

“Though it’s in a good direction, the overall sentiment channel checks suggest that the recovery in tier-1 cities (except in Shenzhen) is not as strong as it was in last September where the four cities relaxed mortgage restriction,” UBS analyst John Lam said in a note.

At the close, the Shanghai Composite index was down 0.46% at 3,109.57 and the blue-chip CSI 300 fell 0.73%.

The financial sector sub-index, consumer staples real estate and healthcare sub-index declined between 0.55% and 2.42%.

The Hang Seng index edged down 6.19 points or 0.03% at 18,821.16. The Hang Seng China Enterprises index slipped 0.03% to 6,686.13.

The smaller Shenzhen index ended down 1.08% and the start-up board ChiNext Composite index was weaker by 1.35%.

The CES CN Semiconductor Index edged up against a broadly weak market after China set up its third planned state-backed investment fund to boost its semiconductor industry.

The sub-index of the Hang Seng tracking energy shares rose 1.3%, while the IT sector rose 0.2%, the financial sector ended 0.18% lower and the property sector fell 1.04%.

Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.1%, while Japan’s Nikkei index closed down 0.11%.