South Korea, Hong Kong tech shares fall as Asian stocks decline despite Wall Street rally
MSCI’s Asia Pacific equities gauge drops 0.6% as the S&P 500 and Nasdaq 100 indices notch records
Asian stocks declined on Tuesday, with MSCI’s Asia Pacific equities gauge falling 0.6%, while Wall Street witnessed record-breaking gains in the S&P 500 and Nasdaq 100 indices. Technology shares in South Korea and Hong Kong battled lower, while the Nikkei 225, Japan’s Topix, and Hong Kong’s Hang Seng also experienced declines. Meanwhile, US equity index futures reversed earlier gains, and European shares mirrored the downward trend.
The US dollar strengthened against its peers, and Bitcoin dropped nearly 1.6% to around US$84,200. Oil prices climbed after Iran intensified attacks on tankers in the Strait of Hormuz, with Brent crude increasing nearly 1% to about US$101.50 a barrel. Higher oil prices caused US Treasuries to slip, with benchmark 10-year yields increasing three basis points to 5.31%.
The weak performance of Asian tech shares, often regarded as the beneficiaries of the AI boom, contrasts with Wall Street's optimism over corporate earnings. Analysts anticipate a 25% surge in S&P 500 profits for Q3 compared to the previous year, but the lack of fresh catalysts and elevated oil and bond yields are leading to a sense of fatigue in the region.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 4 other outlets
- Asian shares weaker, oil up as investors weigh Saudi-Houthi escalation freemalaysiatoday.com
- Asia shares weaker, oil up; investors weigh Saudi-Houthi escalation brecorder.com
- Asia shares weaker, oil up; investors weigh Saudi-Houthi escalation nst.com.my
- Asia shares weaker, oil up; investors weigh Saudi-Houthi escalation investing.com
