Global tech stock rout worsens as China index set for record low

The global selloff in technology equities continued in Asia on Tuesday amid fears of higher interest rates, with a benchmark tracking Chinese technology stocks in Hong Kong set to close at a record low.

The Hang Seng Tech Index, which officially started in July last year, dropped as much as 2.5% to slip below the previous closing low on Aug. 20. The gauge, which counts Tencent Holdings Ltd. and Alibaba Group Holding Ltd. as key members, is headed for a fourth consecutive weekly decline.

Megacap technology stocks that rallied through the pandemic have declined as increased regulatory oversight and a sudden spike in yields triggered investor fears of a bubble. Chinese companies, already caught up in Beijing’s regulation drive, have been hit especially hard.