China, Hong Kong stocks drop as higher bond yields hit sentiment

BEIJING/SHANGHAI: Chinese equities dropped on Friday, after a rise in global bond yields prompted selling in high-priced consumer and material stocks as risk sentiment soured.

** At the midday break, the Shanghai Composite index was down 1.04% at 3,426.91 points, while the blue-chip CSI300 index was down 1.9%.

** The consumer staples sector fell 2.44%, the real estate index dropped 2.48% and the materials subindex declined 2.46%.

** Chinese H-shares listed in Hong Kong fell 1.71% to 11,274.59, while the Hang Seng Index was down 1.55% at 28,950.83.

** Yields on US 10-year notes spiked to the highest since early 2020 overnight, dragging down global and Asian equity markets as richly priced tech stocks declined.

** The smaller Shenzhen index was down 1.22%, the start-up board ChiNext Composite index was weaker by 2.12% and Shanghai's tech-focused STAR50 index was down 0.15%?.

** Around the region, MSCI's Asia ex-Japan stock index was weaker by 1.42% while Japan's Nikkei index was down 1.70%.