Updates to market close
By Jiaxing Li
HONG KONG, Dec 18 (Reuters) - China shares ended flat on Thursday as investors rotated into defensive sectors amid concerns over artificial intelligence spending and regional tensions, while tech and property stocks weighed on sentiment.
** The benchmark Shanghai Composite Index .SSEC added 0.2% to close at 3,876.37, and the blue-chip CSI300 Index .CSI300 dropped 0.6%. Both were headed towards a week of losses.
** Hong Kong's benchmark Hang Seng Index .HSI added 0.1%. The Hang Seng Tech Index .HSTECH lost 0.7%.
** Leading gains onshore, China's CSI Defense Index .CSI399959 rose 1.9% to a two-month high, after the U.S. approved an $11.1 billion arms package for Taiwan, the largest ever.
** The CSI Banks Index .CSI399986 added 2% and the energy sector index .CSIEN jumped 1.7% as investors piled into defensive plays.
** The financials sector .CSI300FS climbed 0.8%, with broker CICC 601995.SS soaring as much as 10% to the daily limit after unveiling plans on Wednesday to buy two smaller rivals in a share-swap deal worth about $16 billion.
** Among laggards, the CSI AI Index .CSI930713 and the semiconductor sector .CSI931865 both lost 1.8%, after jitters over AI funding dragged tech stocks on Wall Street overnight.
** The CSI 300 Real Estate Index .CSI000952 lost 1.8% as developer Vanke's debt crisis continued.
** "We continue to expect the market to remain volatile at elevated levels, and a clearer signal of sustained upside is still needed," analysts at Huaan Securities said in a note.
** "January following a strong year tends to see heightened swings, suggesting short-term risks of a pullback remain," they added.
** Asian shares fell as the tech sector took a beating on renewed angst over AI, while investors braced for a wave of central bank meetings that are set to underscore policy divergence worldwide.
(Reporting by Jiaxing Li in Hong Kong; Editing by Sumana Nandy and Rashmi Aich)
((jiaxing.li@thomsonreuters.com))
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