Hang Seng Index falls as US Treasury yields rise above 5%

The Hang Seng Index experienced significant volatility, dropping as much as 275 points to reach a low of 24,811 before closing at 24,834, a decrease of approximately 1%. Northbound capital saw a net inflow of 34.49 billion yuan, representing a 72.8% decrease compared to previous periods.

Major technology stocks led the decline, with Tencent falling 2.3% despite a net inflow of 2.04 billion yuan from Northbound investors. Xiaomi also saw a decline of 3.7%, while net inflows for the company totaled 457 million yuan. In contrast, oil stocks performed well due to rising geopolitical risks in the Middle East and rebounding crude oil futures.

Global market pressures included rising US Treasury yields, with the 10-year yield surpassing the 5.1% mark following hawkish comments from Federal Reserve officials regarding inflation. Additionally, US manufacturing and service PMI data exceeded market expectations, signaling strong domestic demand and supporting economic activity despite inflation concerns.