Asian stocks fall as US chipmaker selloff deepens
The MSCI Asia Pacific gauge dropped 0.4 per cent while South Korea’s Kospi Index fell almost 3 per cent, according to the Economic Times.
Asian stocks opened lower on Tuesday following a deepening selloff in US chipmakers, according to the Economic Times. The MSCI Asia Pacific gauge dropped 0.4 per cent, while South Korea’s Kospi Index fell almost 3 per cent. Japan remained closed for a holiday.
In the US, a gauge of chipmakers extended a three-day decline to 12 per cent. The Nasdaq 100 has fallen 10 per cent from its peak and entered a technical correction. Meanwhile, US stock futures gained as some investors looked to buy on dips.
The decline in technology shares occurred despite a slump in oil prices. Global benchmark Brent crude closed at $104.77 a barrel after falling 7.6 per cent. Traders assessed signs of progress toward ending the conflict in Iran, with US President Donald Trump telling reporters in Washington that a deal could happen.
In China, the central bank said it would encourage financial institutions to use stock-support tools to bolster market stability. While the Nasdaq Golden Dragon China Index rose 2.3 per cent in US trading, Citigroup Inc. economist Xiangrong Yu suggested these measures might stabilise the market rather than trigger a lasting rally.
Concerns regarding artificial intelligence spending also impacted markets. Large technology companies are returning to bond markets to fund investment plans, including Oracle Corp. selling $10 billion in bonds and Microsoft Corp. selling $25 billion in bonds on Thursday.
Investors are now looking toward US economic data, including job openings due Tuesday and weekly jobless claims on Thursday. Economists expect the Friday payrolls report to show job growth of 65,000 in October with an unemployment rate of 4.2 per cent.
