SINGAPORE — Technology stocks in Asia-Pacific declined in Wednesday morning trade, mirroring losses seen among their peers on Wall Street following an overnight surge in the U.S. 10-year Treasury yield.

Stocks of Chinese technology stocks fell in Hong Kong on Wednesday morning trading, AlibabaIf you fall below 4.31%, MeituanWhile declining by 2.81% Tencent2.15%) Hang Seng Tech traded at 3.38% less.

Japan’s shares are of SoftBank Group3.12%. South Korea saw Kakao share decline by 2.33%. Naver slipped 2.63%. SK Hynix declined 3%.

These losses occurred in Asia after tech-heavy Nasdaq composite fell overnight to Wall Street. It dropped 2.26%, or 14.204.17.

On Wednesday, the wider Asia-Pacific market also traded in negative territory.

Hong Kong Hang Seng indexDropped by 1.74 percent Stocks of mainland China declined after they returned to trading earlier in the week, following holiday periods. This is the Shanghai compositeThe decrease was 0.65%, Shenzhen componentReduced by 0.847%

A private survey revealed Wednesday that the Chinese service sector saw a significant contraction in March. Caixin’s services purchasing managers’ index fell to 42.0 in March. This is well below the February reading of 50.2 and also well below the 50 mark, which separates contraction from growth on a monthly base. This was also Wednesday’s lowest reading since February 2020.

China is still fighting its worst Covid pandemic since early 2020.

Japan has the following: Nikkei 225The Topix index declined 1.37% while it fell 1.89%. South Korea KospiThe decline was 0.84%

The Other Places S&P/ASX 200 in Australia declined 0.73%.

MSCI’s Asia-Pacific share index, which is the largest outside of Japan, traded at 1.26% below its previous high.

Investors will monitor U.S. Treasury moves on Wednesday. The 10-year Treasury rose to its highest level since May 2019Tuesday’s high was 2.562%, before it dipped to 2.55% on Wednesday.

The benchmark 10-year Treasury note yield was last at 2.61611%. That’s well over the yield of 2 year Treasury notes, which is 2.5853%. The prices affect yields in an inverse way.

An increase in the 2 year Treasury yield relative to the 10 year rate which happened last weekHistorical precedents of recessions have been established before the current reversal.

After the announcement, the 10-year Treasury yield shot up overnight comments from U.S. Federal Reserve Governor Lael BrainardThe central bank should adopt a more aggressive approach in shrinking its balance sheet.

Brainard had a tendency to pepper her comments about balance sheet reductions with adverbs which only added to the hawkish perspective. Frances Cheung, Terence Wu from Singapore’s OCBC Treasury Research added that it is possible for the reduction to begin earlier than planned.

We are not yet likely to reach peak-hawk status at the Fed. “This dynamic could continue,” they stated.

The U.S. dollar indexFollowing a jump of below 99,, the metric that tracks the greenback in relation to a basket of peers was at 99.608

The Japanese yenThe dollar traded at 123.98, weaker than the levels of below 123.3 yesterday. The Australian dollarAfter a drop of more than $0.762, the price changed to $0.7571.

Petroleum prices rose in the early hours of Asia trade, when international benchmarks were used. Brent crude futuresThe barrel price rose by 0.18% to $106.83 U.S. crude futuresThey were slightly more expensive at $102.03/barrel