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Declines in Shenzhen and Hong Kong stocks led Asia-Pacific markets lower Wednesday after a top Chinese official made no mention of a trading link between the two cities.

The Shenzhen Composite Index was recently off 1.8% while Chinese stocks pulled the Hang Seng Index 1.1% lower. The Shanghai Composite Index was off 1.1%, South Korea's Kospi was off 0.6% and Australia's S&P ASX 200 was flat.

Local media had speculated in recent weeks that Zhang Dejiang, the Chinese Communist Party's third-highest-ranking official, would provide some idea about the launch of a stock-trading link between Hong Kong and Shenzhen, which traders hope will generate excitement about China's equity markets.

But Mr. Zhang, who spoke in Hong Kong earlier Wednesday, made no mention of the program. As expected, he focused on China's "Belt and Road" initiative to develop trade and infrastructure links between China, the rest of Asia, and Europe.

Chinese brokerage stocks slumped in the morning. Citic Securities Co. was down 2.4% and Haitong Securities Co. fell 1.8%. Shares of Hong Kong Exchanges & Clearing Ltd., the city's stock-exchange operator, fell 0.9%.

These shares had rallied in Hong Kong in anticipation of some clarity from Chinese authorities about the timing of the trading program.

Also in Hong Kong, technology and consumer stocks were down 2.3% and 1.7%, respectively.

Investors here were worried about the possibility of higher U.S. interest rates after data overnight showed that U.S. consumer prices rose at their fastest pace in three years. That, combined with hawkish comments from U.S. Federal Reserve officials, increased expectations that the central bank will pick up the pace of rate rises this year.

Sectors such as consumer companies, which pay steady dividends, have been rising this year due to prolonged low interest rates and scarce returns elsewhere.

In China, losses also came amid worries about the bond market. China's stock regulator is said to be demanding that bond issuers examine sources of funds for companies, according to Zhang Xin, an analyst at Guotai Junan Securities.

Japan shares bucked the trend Wednesday.

The Nikkei, which was lower earlier in the day, gained after data showed that Japan's economy grew at a stronger-than-expected pace in the first quarter.

"When stocks fell sharply in January and February, some might have felt there was no hope for the future," said Soichiro Monji, general manager of economic research at Daiwa SB Investments. "From that perspective, today's figures are decent."

Kosaku Narioka and Yifan Xie contributed to this article.

Write to Chao Deng at Chao.Deng@wsj.com

(END) Dow Jones Newswires

May 18, 2016 00:55 ET (04:55 GMT)

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