Hong Kong stocks advanced yesterday, as the market welcomed both the US-China trade agreement and an easing of US bond yields. However, turnover remained thin, while June futures contracts closed at an eight-point discount to the underlying cash market, highlighting uncertainty over longer-term market direction, brokers said. The Hang Seng Index closed at 10,952.78, up 87.79 points, or 0.8 per cent from Friday. The market was closed on Monday for a public holiday. Turnover fell to a weak $3.14 billion, compared with Friday's revised figure of $3.54 billion. The Hang Seng Index jumped from the opening bell, only to trade in a narrow range through the rest of the day. Dharmala Securities head of research Ben Kwong said: 'There was technical selling pressure at 11,000 points.' Brokers said that the resolution of the latest US-China trade dispute was welcome news, but it was not enough to shake off cautious market sentiment. Howard Gorges, director at South China Brokerage, said: 'It helped, but was not a major factor. If it had been the main factor in last week's losses, there would have been a bigger bounce today.' Mr Gorges said last week's 331-point fall by the Hang Seng Index was due primarily to rising US bond yields. Again yesterday, the fact that the US 30-year Treasury bond yield remained solidly above the 7 per cent level kept many investors sidelined, brokers said. Gains were led by blue-chip counters rebounding from losses suffered last week. Citic Pacific and Cathay Pacific Airways, both of which led last week's fall, closed up yesterday. Property-related counters were generally higher. Hysan Development gained 50 cents, or 2.1 per cents, to end at $24. Henderson Land moved up 50 cents to $55.75. South China Morning Post (Holdings) was the strongest among blue-chip counters, surging 35 cents, or 6.5 per cent, to close at $5.70. The stock surged due to a newspaper report that SCMP was a good buy, particularly following the recent restructuring of its rival Eastern Express newspaper, traders said. The market was seen to remain quiet today, with investors looking to US stock and bond market direction for inspiration, brokers said.