Asian equities sank and US Treasuries remained under pressure following sharp losses on Wall Street fuelled by US economy fears as President Donald Trump tries to push through fresh tax cuts that could balloon the already huge deficit.

In Hong Kong, the benchmark Hang Seng Index dipped 79.2 points, or 0.33 percent, to open at 23,748.58.

Across the border, Chinese stocks opened lower, with the benchmark Shanghai Composite Index down 0.17 percent to open at 3,381.86.

The Shenzhen Component Index opened 0.19 percent lower at 10,274.68.

A weak auction of 20-year US government debt flashed a warning sign that the bond market was worried about the country's finances, days after Moody's lowered its top-tier credit rating.

The news brought an end to a healthy run-up in recent weeks that was stoked by the China-US tariff detente and signs of progress between the United States and other countries on trade.

Bond yields spiked across the board as investors demanded more interest for holding government debt, signalling their fears about the world's biggest economy – 30-year Treasuries hit their highest level since late 2023.

The selling came after the auction of 20-year bonds attracted tepid interest, and brought back memories of the sell-off that followed Trump's "Liberation Day" tariff blitz last month, which was followed by the White House taking a less aggressive approach. (AFP/Xinhua)