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Hong Kong - Hong Kong shares finished 0.13% higher on Wednesday following a two-day losing streak, although gains were limited by concerns over a US budget stand-off.
The benchmark Hang Seng Index rose 30.59 points to 23 209.63 on turnover of HK$52.43bn ($6.77bn).
The index was only one of three in the region that ended in positive territory as global investors grow worried that parts of the US government will shut down on Tuesday next week if a budget deal is not reached.
Adding to concerns are Republican calls for cuts to President Barack Obama's healthcare law in the budget before they agree to any lifting of the country's borrowing limit, which will be reached in mid-October.
Failure to lift the ceiling will mean the US is unable to service its debts and in turn lead to a default.
A face-off between Republicans and Democrats in 2011 was averted at the last minute but did not avert a global share sell-off and a downgrade of Washington's AAA sovereign debt rating.
"The potential of a 2011-type fallout is burning red hot in the minds of investors," said Gavin Parry, managing director of Parry International Trading in Hong Kong.
Chinese banks saw brisk trade. ICBC closed up 0.72% at HK$5.61 while China Construction Bank was at HK$6.15, up 0.49%.
However HSBC Holdings dipped 0.7% to HK$85.15.
Chinese shares closed 0.41% lower on profit-taking in stocks related to a planned Shanghai free-trade zone (FTZ), dealers said. The benchmark Shanghai Composite Index shed 9.01 points to 2 198.52 on turnover of 143.8bn yuan ($23.5bn).
"We expect the rally in (the FTZ-based) stocks may come to an end soon," Dongxing Securities analyst Sun Zhen told Dow Jones Newswires.
Garment import and export operator Jiangsu Sainty slumped 9.19% to 7.41 yuan and international trading company Shanghai AJ Corporation fell 5.63% to 13.91 yuan.
Logistics services provider YUD Yangtze River Investment Industry slid 6.00% to 15.97 yuan, while Shanghai Jin Jiang International Industrial Investment declined 5.46% to 12.99 yuan.
