Chinese tech stocks jump as Hong Kong’s Hang Seng index rises nearly 2%

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SINGAPORE — Hong Kong’s Hang Seng index led gains among the major Asia-Pacific markets on Monday as Chinese tech stocks in the city jumped.

In morning trade, the Hang Seng index gained 1.42% as shares of Tencent surged 2.06%. Other Chinese tech stocks also rose, with Alibaba up 2.83% while NetEase soared 4.43%.

The city’s chief executive Carrie Lam announced she will not be pursuing a second term in office.

Markets in mainland China are closed on Monday and Tuesday this week for holidays.

The Nikkei 225 in Japan swung between positive and negative territory, last slipping 0.14% as shares of Fast Retailing dropped 2.04%. The Topix index climbed 0.06%.

South Korea’s Kospi climbed 0.33%.Elsewhere in Australia, the S&P/ASX 200 rose 0.29%.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.55% higher.

A closely watched part of U.S. Treasury yields inverted on Friday as short-term rates jumped following the release of jobs data stateside, raising concerns over a potential recession on the horizon.

The benchmark 10-year Treasury yield last sat at 2.4152%, while the rate on the 2-year Treasury note was at 2.4808%. Yields move inversely to prices, with 1 basis point equal to 0.01%.

Yield curve inversions have historically happened ahead of recessions, though many economists believe the curve needs to stay inverted for a substantial amount of time before it gives a valid signal.

Currencies and oil

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 98.573, as compared to levels below 98 seen in late March.

The Japanese yen traded at 122.61 per dollar, stronger than levels above 124 seen against the greenback last week. The Australian dollar was at $0.751, having traded in a range between $0.747 and $0.753 for much of last week.

Oil prices were higher in the morning of Asia trading hours, with international benchmark Brent crude futures up 0.12% to $104.52 per barrel. U.S. crude futures climbed 0.1% to $99.37 per barrel.

— CNBC’s Patti Domm contributed to this report.

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