China and Hong Kong Stocks Plunge Amid Widening Yield Gap

On Monday, stocks in China and Hong Kong fell due to concerns over the growing U.S.-China yield gap amid reduced expectations for U.S. interest rate cuts. The Shanghai Composite and CSI300 indices declined alongside Hong Kong's Hang Seng index, influenced by strong U.S. jobs data and the drop in Chinese bond yields.

On Monday, stocks in China and Hong Kong experienced a decline, with the Hong Kong shares marking a six-day losing streak. This drop comes amid mounting concerns over the widening U.S.-China yield gap, as expectations for U.S. interest rate cuts dwindle.

The Shanghai Composite index closed down by 0.25% at 3,160.76, while the blue-chip CSI300 index recorded its fourth consecutive day of losses, with a 0.27% dip. Despite this, sectors such as consumer staples and real estate showed some resilience.

Meanwhile, Hong Kong's Hang Seng index fell by 190.15 points, or 1%, influenced by strong U.S. jobs data from Friday, which challenged hopes for further rate cuts. Analysts highlight increasing market pressure, particularly in Hong Kong, driven by a significant drop in Chinese yields.

(With inputs from agencies.)