Hong Kong shares fell 0.25 percent on Wednesday as profit-takers moved in after a healthy two-day rally.
The benchmark Hang Seng Index eased 58.45 points to 23,257.29 on turnover of HK USD 52.50 billion (USD 7.54 billion).
The market enjoyed a bright start to the week after a string of upbeat data, including on US jobs, Japanese economic growth, and Chinese manufacturing and trade.
Leading the advances has been Wall Street, where the Dow and S&P 500 have broken records on a regular basis over the past two weeks.
However, on Tuesday the US advance stalled as the Dow managed just a 0.02 percent gain to hit a new record, the S&P 500 dipped 0.02 percent from its all-time high while the Nasdaq nudged 0.04 percent higher.
The main focus for the rest of the week will be on the Bank of Japan`s monetary policy meeting that concludes Friday and Chinese economic figures for May, including retail sales and industrial output.
Internet firm Tencent rose 2.56 percent to HK USD 116.4, China Mobile eased 2.08 percent to HK USD 75.15 and casino operator Sands China was 3.57 percent up at HK USD 53.
Macau casino stocks bucked the broader market after Credit Suisse called recent selling in the sector "excessive". Sands China Ltd. rose 3.6 percent to HK USD 53.70, cutting losses so far this month to 5 percent. Galaxy Entertainment Group rose 3.1 percent to HK USD 57.65.
But in China the benchmark Shanghai Composite Index edged up 0.12 percent, or 2.42 points, to 2,054.95 on turnover of 63.2 billion yuan (USD 10.4 billion).
The Shenzhen Composite Index, which tracks stocks on China`s second exchange, rose 0.47 percent, or 5.05 points, to 1,068.93 on turnover of 97.0 billion yuan.
"Investors stayed on the sidelines as their earlier worries over the domestic economy and the resumption of IPOs (initial public offerings) haven`t disappeared completely," Shenyin Wanguo Securities analyst Qian Qimin.
"The market will likely consolidate in the near term," he added.
China`s stock regulator said Monday it had given the green light for 10 firms to list on the country`s stock exchanges, sparking fears the new issues will cause a glut.
Medical equipment makers led the gains. Jiangsu Yuyue Medical Equipment & Supply gained 1.23 percent to 26.29 yuan, while retailer Suning dropped 2.25 percent to 7.38 yuan despite announcing it would become a sponsor of Spanish football giants Barcelona.
Among other firms Air China rose 0.60 percent to 3.33 yuan, SAIC Motor added 0.53 percent to 15.18 yuan and Wuhan Iron & Steel was unchanged at 2.02 yuan.
Ping An Insurance was off 0.8 percent at 40.14 yuan and China Securities fell 1.0 percent to 11.38 yuan.
