Asian stocks fall after tech sell-off on Wall Street

BANGKOK – Shares in Asia declined on Tuesday following the sell-off of several big tech companies.

Japan’s Nikkei sank 225% and Hong Kong lost 2% while Shanghai advanced.

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.

China last month reported the strongest increase in producer prices since October 2017, as supply shortages led to a decrease in manufacturing.

China’s economy was earlier to overcome the epidemic and the Central Bank or the People’s Bank of China is adjusting policies to keep inflation under control.

The producer price index jumped 6.8% in April from a year earlier, an increase of 4.4% in March. However, although the feed-through to consumer prices is relatively low, Julian Evans-Pritchard of Capital Economics said in a comment, “We still doubt inflation is going to be a major driver of PBOC policy.”

The Shanghai Composite Index rose 0.4% to 3,441.85, erasing the initial loss on Tuesday.

Malaysia’s government on Monday ordered a lockout for nearly a month to fight coronovirus, while allowing businesses to operate at reduced capacity,

Tokyo’s Nikkei 225 rose 909.75 points to 28,608.59 points, while Hong Kong’s Hang Seng fell 2.2% to close at 27,974.59. In Seoul, Cospi fell 1.2% to 3,209.43.

Australia’s S&P / ASX 200 fell 1.1% to 7,097.00. 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.

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.

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 was stable at 1.61%.

Rising commodity prices have started pushing up prices of some consumer products, but analysts say growth is expected to be mild and tied to a growing economy, even as the jobs market lags behind . 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 55 cents to $ 64.37 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 $ 67.77 a barrel at a rate of 55 cents.

The US dollar rose from 108.83 yen to 108.92 Japanese yen late on Monday night. The euro was unchanged at $ 1.2134.


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