Hong Kong Tech Giants Extend Decline on Hawkish Fed Jitters

China’s big three tech stocks, the BATs trio - $BIDU-SW (09888.HK)$ , $BABA-W (09988.HK)$ , and $TENCENT (00700.HK)$ , fell between 1.2% and 2% in Hong Kong trade. $Alibaba (BABA.US)$ and $Baidu (BIDU.US)$ also fell sharply on Monday.

The three were among the biggest weights on the $Hang Seng Index (800000.HK)$ , which lost around 1% after a 0.7% loss on Monday.

Other tech majors, including $ALI HEALTH (00241.HK)$ and $LENOVO GROUP (00992.HK)$ also sank over 3%.

Tech stocks have now extended losses into a third straight session after Fed Chair Jerome Powell said the central bank has no plans for a dovish pivot, and that it will keep hiking rates aggressively. His comments drove up the dollar and Treasury yields.

Rising interest rates are negative for tech stocks, as they discount future earnings from the sector against a stronger dollar. Traders are now penciling in a greater chance of a 75 basis point hike by the Fed in September.