China, Hong Kong shares ease as global rate concerns weigh

HONG KONG, Nov 11 (Reuters) - China stocks edged lower and Hong Kong shares fell on Wednesday, as investors weighed renewed global rates concerns against domestic market stabilization measures.

** At the midday break, the Shanghai Composite index .SSEC was down 0.2% at 3,654.95 and the blue-chip CSI300 index .CSI300 was down 0.3%.

** Tech shares made some cautious gains. The start-up board ChiNext Composite index .CNT was higher by 1% and Shanghai's tech-focused STAR50 index .STAR50 was largely flat.

** The telecommunications sector was among the biggest gainers, with the CSI 5G Communications Index .CSI931079 up 3% by the midday break.

** Optical communications module maker Zhongji Innolight 300308.SZ rose 8.3% in the morning session.

** In Hong Kong, the Hang Seng Index .HSI was down 0.8% at 24,352.69 and the Hang Seng Tech Index .HSTECH declined 1.4%.

** Around the region, equity markets were stuck in a narrow range with traders caught between rate hike expectations and oil-market tensions. A hotter-than-expected consumer inflation reading in the US and hawkish policymakers drove up bets of a quicker pace of rate hikes.

** The resulting rise in global bond yields and strengthening dollar have put pressure on A-share valuations, analysts at Nanhua Futures said in a note.

** "This round of recent market recovery has been driven mainly by domestic measures to support markets and a temporary easing of overseas uncertainties," they said.

** "However, both the strength and durability of these factors appear limited. While market sentiment has improved somewhat, investors remain broadly cautious, and stock indexes are expected to trade in a range in the near term."

** Elsewhere, oil prices rose on Wednesday after falling to two-month lows in the previous session, as the market swung between hopes of de-escalation in the Iran war and concerns over continued attacks on shipping in the Strait of Hormuz.