HONG KONG :Asian tech stocks tumbled on Tuesday and a regional equity gauge suffered its biggest slide in nearly two months after a selloff on Wall Street, as traders braced for U.S. inflation data amid worries growing price pressures might bring forward rate rises.
"Markets reversed course overnight as inflation fears drove investors away from growth stocks, notably the tech stocks, to pick cyclicals amid the momentum of the economic recovery," said Hong Hao, head of research at BoCom International. "Inflation's shadow looms large and we do think that there is a limit to the Fed’s tolerance of inflation," DBS Bank strategists said in a note on Tuesday.
Jim McCafferty, head of equity research in Asia at Nomura, said pressure on the tech sector as governments look to curtail big tech's influence and find cash to foot the bill for stimulus spending was another factor weighing on the market.
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