Hong Kong stocks opened lower on Wednesday, as war-driven inflation fears hammered global bond markets while prompting investors to raise bets of higher interest rates later this year.

The Hang Seng Index opened down 88 points, or 0.3 percent, at 25,709.

The Hang Seng Tech Index lost around 0.3 percent, opening at 4,840.

The declines came as a sell-off in global bond markets persisted overnight with the benchmark US 10-year Treasury yield hitting a 16-month high of 4.687 percent, while the 30-year yield climbed to 5.198 percent, levels not seen since 2007.

Across the border, mainland shares also declined, with the Shanghai Composite Index losing around 0.4 percent to open at 4,152.

The Shenzhen Component Index opened 0.5 percent lower at 15,487.

Investors have ramped up bets that the US Federal Reserve might need to raise interest rates later this year as inflationary concerns persist with global oil prices staying above US$110 a barrel.

The Strait of Hormuz remained effectively closed and US President Donald Trump said that he might need to strike Iran again, one day after he said he was postponing an imminent attack to allow for more negotiations with Tehran. (Xinhua/Reuters)



Edited by Thomas McAlinden