The Hang Seng Index fell 0.3%, or 81 points, to 24,752 on Thursday, extending losses for a second session as global bond sell-off, firmer US dollar and a rebound in oil prices weighed on sentiment.
US Treasury yields surged overnight, with the 10-year yield reaching its highest level since 2007, while the dollar strengthened to a near two-month high.
The backdrop could pressure Hong Kong technology and growth stocks, which remain sensitive to higher global borrowing costs.
Investors also focused on the Trump-Xi summit in Washington, with US Treasury Secretary Scott Bessent saying the US and China had agreed to extend their trade truce by two months to January 10.
Oil prices rebounded amid uncertainty over progress in US-Iran talks, adding to inflation concerns.
Notable laggards were Tencent (-0.5%), Z.AI Co. (-1.9%), Kingboard Laminates (-1.5%), Lenovo (-3.7%), and SMIC (-1.8%).
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