Stocks in Asia have fallen after several Big Tech companies sold lower than the US benchmark
BANGKOK – Shares in Asia declined on Tuesday following the sell-off of several big tech companies.
Japan’s Nikkei 22 Kong% 2. 225% and Hong Kong 2.4% lost on Tuesday.
Analysts said that despite the Federal Reserve’s assurances and being much weaker than the US jobs read last week, investors expected the price rise to pressurize central banks into tapping on their large incentives and ultra-low interest rates. Have relied on, analysts said.
“Investors have looked at the jobs report and continue to focus their attention on the inflation story with rising commodity prices and chip shortages,” IG’s Jun Rong Yepp said in a commentary.
He said that as markets are up this week, American and Chinese consumers and producers are seeing prices.
Tokyo’s Nikkei 225 slipped to 28,705.95, while Hang Seng in Hong Kong closed at 27,928.11. The Shanghai Composite Index lost 0.3% to close at 3,417.80. In Seoul, Cospi dropped 1.3% to 3,206.80.
Australia’s S&P / ASX 200 fell 1.1% to close at 7,094.30. The government is scheduled to come out on Tuesday with a look towards working to release a large-spending economic plan for the next fiscal year and repairing the pandemic damage and winning votes in the general elections.
Shares fell in other regional markets.
On Monday, the S&P 500 fell 1% to 4,188.43. The Dow Jones Industrial Average fell 0.1% to 34,742.82. The Blue Chip Index, which was at an all-time high on Friday for the third straight day, traded at a high for Monday, but was dipped to red in the last half-hour of trading.
The small company and technology stocks were having a rough day. The Nasdaq fell 2.5% to 13,401.86, while the Russell 2000 index fell 2.6% to 2,212.70.
Large tech companies, including the parent company of Apple, Facebook, Amazon and Google, have accounted for the S&P 500’s biggest decline. Communication stocks and companies that rely on consumer spending have also helped reduce the market in household goods manufacturers, utilities and other sectors.
The sales wave handed Nasdaq its worst day in more than seven weeks, as the index weighs heavily with large technology stocks. The tech sector, which led to a spectacular comeback of the market in 2020, now surpassed the other 10 sectors in the S&P 500 this year with a 3.9% lead.
Inflation has been a concern for investors after bond yields rose earlier this year, but yields have mostly remained stable since then. The yield on the 10-year Treasury decreased from 1.61% to 1.59% late on Monday night.
Rising commodity prices have started pushing prices of some consumer products higher, but analysts expect this to be milder and will be linked to a growing economy.
Although the recovery in the employment market has declined, other measures suggest that the economy is growing. Consumer confidence and retail sales are regaining as people are vaccinated and the business reopens. According to The Transportation Security Administration, Americans made a record of epidemic-time air travel on Sunday.
Meanwhile, the most recent round of corporate income reports showed widespread recovery touching many different sectors and industries during the first three months of the year. Most of them were speculated ahead of the report and investors are now off the next big round of results.
In other trades, the price of US benchmark crude oil fell 52 cents to $ 64.40 a barrel in the electronic benchmark on the New York Mercantile Exchange. It rose 2 cents to $ 64.92 a barrel on Monday. Brent crude, the international standard for pricing, gave 57 cents to $ 67.75 per barrel.
AP Business Writers Damian J. Troise and Alex Vega contributed.