Global Market Today: Asian equities decline as chip selloff extends
Asian stock markets witnessed a downturn as semiconductor shares plummeted sharply. The rise in bond yields and escalating oil prices contributed to a bearish market sentiment. Investors pulled away from growth stocks, driven by concerns over inflation and mounting debts. Additionally, geopolitical unrest heightened market pressures, with the ongoing tensions in the Middle East exacerbating…
Asian equities declined on Wednesday as the selloff in semiconductor shares continued, accompanied by high bond yields and surging oil prices, according to a report from a major financial news source. The MSCI's Asia Pacific equities benchmark fell over 1%, with South Korean shares dropping nearly 6%. Technology shares, particularly chip companies like Samsung Electronics Co. and SK Hynix Inc., saw significant declines of around 7% each after a key US gauge of semiconductor stocks fell 5%.
The Nasdaq 100 Index indexes slipped lower after the underlying gauge dropped 1.7%. Treasuries edged higher by the market's close, but 10-year yields remained near multi-decade highs, exacerbated by a global bond selloff. Brent crude prices rose 0.3% to $91.30 a barrel, while gold extended its losses, trading just below $4,340 an ounce.
Analysts attributed the market's risk-off stance to elevated yields, geopolitical uncertainty, and concerns about inflation, government spending, and bond issuance. Higher energy costs and long-term borrowing costs are causing unease among investors, leading to a defensive shift in equity investments.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
