Asian market declines as technology selloffs spread around the world

Asian market declines as technology selloffs spread around the world

Asian stocks fell on Wednesday after Wall Street’s sale of large tech stocks lowered the US benchmark. Crude oil prices and government bond yields also weakened.

Tokyo’s Nikkei 225 NIK,
Lost 1.5% and Hang Seng HSI.
In Hong Kong, it was down 1%. Australia’s S&P/ASX 200 XJO,
Down 2.3%, Shanghai Composite Index SHCOMP,
1% reduction. Korea’s KOSPI 180721,
It was down 0.8%.

Among the big losers in the technology sector, SoftBank Group Corp. 9984,
Alibaba Group Holding 9988, down 5%
In Hong Kong and semiconductor maker SMIC 981, the stock price fell 2.5%
, Down 2.7%.

Stocks also fell in Taiwan Y9999.
Most Southeast Asian JAKIDX,

Astra-Zeneca’s coronavirus vaccine trials and the rising tensions in China and the US have left investors unsettling.

Stephen Innes of AxiCorp said, “At least the optimism aroused by vaccine hopes caused a significant spill. Said in the commentary.

President Donald Trump talked about “separating” the US economy from China. As the U.S. cited national security concerns, the presidential campaign heated up as the U.S. tried to limit the use of U.S. technology by Chinese companies, raising uncertainty.

The relationship between the two largest economies in the world has been in crisis for many years, and as the coronavirus pandemic has pushed many countries into recession, hostility risks further undermining global growth.

S&P 500 SPX overnight,
It was down 2.8% to 3,331.84, a third consecutive defeat in nearly three months. Nearly 90% of all stocks were lower.

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Apple AAPL,
, Microsoft MSFT,
And Amazon AMZN,
It fell more than 4% of Big Tech stocks, breaking broad market indices. The Nasdaq Composite Index, full of tech stocks, fell 4.1% and fell 10% after hitting a record high on September 2nd.

Dow Jones Industrial Average DJIA,
27,500.89, down 2.2%. NASDAQ Composite COMP,
Tech stocks, full of tech stocks, fell 4.1% to 10,847.69, down 10% since setting a new record on September 2nd.

Tech stocks soared with anticipation that they could continue to deliver strong profit growth, regardless of the economy and global health. The S&P 500’s share of technology still rose by nearly 23% by 2020, and Amazon surged 70.5% despite the economic disruption caused by the pandemic.

Analysts have benefited more recently as stock options activity in big tech companies surged. Certain kinds of options allow investors to make huge profits on the stock without paying the full price as long as the price of the stock continues to rise. When enough of these kinds of stock options are sold, you can create a buying craze for stocks and accelerate your profits.

However, all of these activities can quickly relax and cause prices to crash, just as they started last week. Critics have been saying for a long time that the big tech stocks jumped too high despite explaining strong profit growth.

Analysts characterized the sudden face around with technical modifications.

Robert Carnell of ING Economics said in the report, “There is more talk about’risk removal’, but it still feels like an overbought position loosening rather than a generalized safe flight. “This is a significant reduction in order. There are still obvious buyers on the way down.”

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10-year Treasury yields fell from 0.72% at the end of Friday to 0.67%. However, it is noticeably higher than the 0.53% offered at the end of July.

As Washington’s Democrats and Republicans are more likely to not find a deal to send more aid to the unemployed, so does hope for further assistance to the US economy.

The slowing growth caused oil prices to fall due to the expectation that supply could outpace demand. US crude oil CLV20 benchmark,
+ 1.14%
What sank was down 28 cents per barrel to $36.48 in electronic trading on the New York Mercantile Exchange. It fell from $3.01 per barrel to $36.76 on Tuesday. Brent crude oil BRNX20,
+ 0.90%
, Down the international standard of 25 cents to $39.53 per barrel. It fell $2.23 over the night to $39.78.

Hayaki Narita of Mizuho Bank said in a commentary, “The biggest reason for the oil buckle seems to be the re-emergence of the US-China risk, which casts serious doubts on the assumptions about a fairly steady demand recovery.

US Dollar USDJPY in currency trading,
It fell from 106.05 yen to 105.93 yen.

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