Written by 3:57 am News

Asian markets follow Wall Street lower as tech sell-off continues

Hong Kong’s Hang Seng Index (HSI) tumbled as much as 2.1% in morning trade and was last down 1.7%. South Korea’s Kospi (KOSPI) also lost 1.7%. Japan’s Nikkei 225 (N225) and China’s Shanghai Composite (SHCOMP) fell 1% and 1.4%, respectively.
Hong Kong's stock market sees its future in Chinese tech
As in the United States, where the tech-heavy Nasdaq Composite (COMP) tumbled nearly 5%, tech stocks were the biggest losers in Asia.

The Hang Seng Tech Index — a new index tracking the 30 largest tech firms listed in Hong Kong — sank more than 3%. Alibaba, JD.com and semiconductor giant SMIC all lost at least 4%. (Tech stocks will soon become even more important for Hong Kong’s benchmark Hang Seng Index, which adds Alibaba and Xiaomi next week — a reflection of the growing number of Chinese tech firms trading in the city.)

Asian markets are “catching a cold” after the “US market sneezing” last night, Jingyi Pan, a market strategist for IG, wrote in a Friday research note.

US stocks recorded their worst day since June on Thursday as investors made a dash for the exits following a streak of record-setting days over the past several weeks. Along with the Nasdaq’s losses, the Dow Jones Industrial Average (INDU) fell more than 800 points to finish down 2.8%. The S&P 500 (SPX) fell fell 3.5%.

Futures for all three US indexes continued to trend lower in after-hours trading.

“Market corrections are to be expected,” said Kerry Craig, global market strategist for JP Morgan Asset Management, in a Friday research note. “A market fueled by central bank largesse, economic surprises and record earnings beats in the last few months was never going to maintain its heady pace forever.”

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