China, Hong Kong stocks drop as higher bond yields hit sentiment

* SSEC -1.0%, CSI300 -1.9%, HSI -1.6%

* HK->Shanghai Connect daily quota used -2.9%, Shanghai->HK daily quota used 1.2%

* FTSE China A50 -2.5%+0.0

BEIJING/SHANGHAI, March 19 (Reuters) - Chinese equities dropped on Friday, after a rise in global bond yields prompted selling in high-priced consumer and material stocks as risk sentiment soured. ** At the midday break, the Shanghai Composite index was down 1.04% at 3,426.91 points, while the blue-chip CSI300 index was down 1.9%. ** The consumer staples sector fell 2.44%, the real estate index dropped 2.48% and the materials subindex declined 2.46%. ** Chinese H-shares listed in Hong Kong fell 1.71% to 11,274.59, while the Hang Seng Index was down 1.55% at 28,950.83. ** Yields on U.S. 10-year notes spiked to the highest since early 2020 overnight, dragging down global and Asian equity markets as richly priced tech stocks declined. ** Market sentiment was dented further after China and the United States kicked off a rough bilateral conversation in Alaska on Thursday, with both sides making rare public rebukes here. ** The smaller Shenzhen index was down 1.22%, the start-up board ChiNext Composite index was weaker by 2.12% and Shanghai's tech-focused STAR50 index was down 0.15%​. ** Around the region, MSCI's Asia ex-Japan stock index was weaker by 1.42% while Japan's Nikkei index was down 1.70%. (Reporting by Cheng Leng in Beijing, Luoyan Liu and Andrew Galbraith in Shanghai; Editing by Devika Syamnath)