HONG KONG, June 23 (Reuters) - Hong Kong stocks fell on Friday and were set for their sharpest weekly decline since March as hawkish comments by U.S. Federal Reserve Chair Jerome Powell dampened market sentiment.

** Hong Kong's Hang Seng Index dropped 1.94% by the midday break, while the Hang Seng China Enterprises Index declined 2.06%.

** The HSI index is down 6% this week, on track for its biggest weekly drop since March 10.

** Tech giants listed in Hong Kong lost 2.6% to lead the decline. Index heavyweight AIA Group fell 2.8%.

** China's mainland financial markets were closed on Friday for the Dragon Boat Festival holiday. Markets will resume trading on Monday, June 26.

** Broader Asian shares fell, as a string of hotter-than-expected inflation prints and hawkish central bank surprises made investors nervous about the economic toll of taming runaway prices.

** MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.7% and is down 3.6% for the week, its biggest setback since March.

** Fed's Powell reiterated his hawkish stance on Thursday and suggested that the central bank had not reached the end of its tightening cycle.

** Overnight, Bank of England delivered a surprising 50 basis point hike.

** Hong Kong stocks face external risks from both the U.S. rate hike uncertainties and geopolitical issues, Dang Chongyu, an analyst at Sealand Securities, said in a note.

"It's too early to say in which month will be the lowest point of the year, as it depends on China domestic policies and external risks," he said.

** Hong Kong's Cathay Pacific Airways dipped 0.5%, even as the carrier forecast its first half-year profit in three years, buoyed by a strong rebound in travel demand and one-off gain from a stake sale in Air China. (Reporting by Summer Zhen; Editing by Rashmi Aich)