Updates to close
SHANGHAI, April 23 (Reuters) - Hong Kong shares rose on Wednesday, tracking global peers amid optimism over a potential de-escalation in Sino-U.S. trade tensions and as U.S. President Donald Trump backed off from attacking Federal Reserve Chair Jerome Powell.
** Mainland Chinese shares, however, finished largely flat.
** Hong Kong's benchmark Hang Seng index .HSI jumped 2.37% to close at 22,072.62 points, its highest since April 3.
** The Hang Seng China Enterprises Index .HSCE rose 2.08%, while the Hang Seng Tech Index .HSTECH surged 3.07%.
** Market sentiment stabilised "following a more conciliatory tone from President Trump and rising hopes of de-escalation in the U.S.-China trade tensions," analysts at OCBC said in note.
** During a question-and-answer volley with reporters on Tuesday, Trump expressed optimism that a trade deal with China could "substantially" cut tariffs.
** U.S. Treasury Secretary Scott Bessent said that he believes there will be a de-escalation in U.S.-China trade tensions, but negotiations with Beijing have not yet started and would be a "slog."
** Trump also backed off from threats to Powell after days of intensifying criticisms of the central bank chief for not cutting interest rates.
** However, mainland Chinese stocks were largely muted as investors remained wary of fast-changing tariff developments and huge uncertainty around the prospects of bilateral trade relations with the United States.
** At the close, the Shanghai Composite index .SSEC dipped 0.1% at 3,296.36 points, while the blue-chip CSI 300 index .CSI300 inched up 0.08%.
** "We think that any deal between China and the U.S. that will result in lower tariffs is unlikely to happen any time soon," Commerzbank economists said in a note.
** "In the short term, it will be difficult for U.S. companies to find substitutes for Chinese intermediate inputs. However, supply chains will likely adjust to a certain extent over time."
** Around the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS was firmer by 1.95%, while Japan's Nikkei index .N225 closed up 1.89%.
(Reporting by Shanghai Newsroom; Editing by Sherry Jacob-Phillips and Varun H K)
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