SK Hynix, Samsung fall as Asian tech sell-off deepens and crude oil extends gains
Sector rout sends the broader MSCI Asia Pacific equities gauge to its lowest close since late July
Asian technology stocks fell sharply as a broad sell-off in tech shares deepened across markets. The MSCI Asia Pacific equities gauge hit its lowest close since late July. South Korea's Kospi Index fell 1.5%, potentially its worst since April. Samsung Electronics and SoftBank were among the tech-related stocks that retreated. MSCI's Asia Pacific equities gauge fell to a low not seen since late July.
S&P 500 futures were essentially unchanged at 12.28 pm Tokyo time. Japan's Topix slipped 1.8%, while Australia's S&P/ASX 200 fell 0.2%. Hong Kong's Hang Seng rose 0.5%, while the Shanghai Composite decreased 1.1%. Sentiment appeared to stabilize as Nasdaq 100 futures edged up 0.1%. Investors rotated into bonds and currencies such as the yen, seen as safe havens in times of crisis.
The 10-year Treasury yield held recent gains, trading at 4.96%. Investors worried that the AI boom might be ending, with concerns about how AI companies would fund their investments. The technology sector's decline provided a boost for defensive sectors like utilities and healthcare, which saw gains in the US. Some investors viewed the downturn as a buying opportunity, especially in semiconductor stocks.
Meanwhile, credit spreads on US dollar bonds of higher-rated Asian companies widened to their highest since July.
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.
