SHANGHAI, July 10 (Reuters) - China stocks were subdued on Wednesday, after data showed the country's consumer inflation missed expectations, while Hong Kong shares tracked Asia markets higher on growing bets of imminent U.S. rate cuts.
Globally, stocks have rallied on the back of growing expectations of a Fed easing cycle likely commencing in September, with Powell saying on Tuesday that the U.S. is "no longer an overheated economy".
China's consumer prices grew for a fifth month in June but missed expectations, while producer price deflation persisted, as government support measures set a bumpy recovery in motion for the world's second-largest economy.
"The risk of deflation has not faded in China. Domestic demand remains weak," said Zhiwei Zhang, chief economist at Pinpoint Asset Management.
China's new yuan loans likely more than doubled in June from May, a Reuters poll showed on Tuesday, as the central bank kept up policy support for the economy amid a shaky recovery.
** At the midday break, the Shanghai Composite index was down 0.33% at 2,949.66 points.
** China's blue-chip CSI300 index was up 0.01%, with its financial sector sub-index higher by 0.18%, the consumer staples sector up 0.4%, the real estate index down 0.68% and the healthcare sub-index up 0.52%.
** Chinese H-shares listed in Hong Kong rose 0.26% to 6,291.68, while the Hang Seng Index was up 0.27% at 17,570.70.
** The smaller Shenzhen index was up 0.08%, the start-up board ChiNext Composite index was higher by 0.34% and Shanghai's tech-focused STAR50 index was up 0.43%.
** Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.08% while Japan's Nikkei index was up 0.04%. (Reporting by Shanghai Newsroom; Editing by Janane Venkatraman )
