Rates Concerns just EXCUSE for Profit Taking!

While focus on interest rate direction after spike in U.S. Treasury yields hit global equities, "I think the correction itself is needed given markets'' strong rally," says YK Chan of Phillip Asset Management; notes Treasury''s 5%-plus yield itself not particularly alarming, merely median point of yields in past 10 years. U.S. stocks'' bull run in past several months increasingly driven by M&A activity, which itself unsustainable, says investors merely using bond yield rise as excuse to take profits. For HK market, property stocks taking a hit today, but given shrinking weighting in HSI, unlikely to hurt market much, Chan says. Index in short term may test 20000, but at that level, blue chips will be attractively valued. HSI now down 1.6% at 20473.67, property sub-index down 2.1%.(