Shares in Hong Kong and the mainland opened lower on Wednesday, after long-dated bond yields rose to fresh multi-decade highs amid a deepening sell-off in global sovereign bond markets.

The city's benchmark, Hang Seng Index, lost 124 points, or about 0.5 percent, to open at 25,346 points.

The tech gauge lost 70 points, or 1.3 percent, to open at 4,678 points.

Across the border, stocks on the mainland also opened lower, with the benchmark, Shanghai Composite Index, down by nearly one percent to open at 3,952 points.

This came despite a soaring trading debut in Shanghai by Chinese robotics pioneer Unitree, which saw its shares soar over 600 percent, after raising over US$900 million in its initial public offering.

Elsewhere, the Shenzhen Component Index opened two percent lower at 14,316 points.

The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, was down 2.7 percent to open at 3,605 points.

The ChiNext Index, together with the Shenzhen Component Index and other indices, reflects the performance of stocks listed on the Shenzhen Stock Exchange.

The selloff tracked losses on Wall Street where firms heavily invested in AI and chips were sharply lower, halting a recent recovery in the sector in recent weeks following a crushing July.

Meanwhile, the yield on a 30-year US Treasury on Tuesday has hit its highest level since June 2007, before the global financial crisis, while the 10-year yields are higher than before the first US-Israel strikes on Iran in late February.

The rising bond yields came as US and Iranian officials dug in and appear prepared for an extended standoff, sending crude prices higher as traders factor in the crucial strait staying closed.

That has stoked inflation expectations and sent US government debt costs soaring, while a flood of corporate issuance also added to the upward pressure. (Xinhua/Reuters/AFP)


Edited by Aaron Tam