Asia Equities Slide as Tech Selloff Overshadows Gains by BanksBy
Japan’s Topix index falls after reaching 2015 high Tuesday
Technology stocks retreat most in more than seven months
Asian stocks fell as a selloff in technology shares overshadowed gains in financial equities. Tencent Holdings Ltd. and Samsung Electronics Co. retreated.
The MSCI Asia Pacific Index fell 0.3 percent as of 4:16 p.m. in Hong Kong with technology and consumer companies as the biggest decliners, while material and finance companies were the best gainers. Speaking in London Tuesday, Federal Reserve head Janet Yellen gave no indication that her plans for continued monetary policy tightening had shifted while acknowledging that some asset prices had become “somewhat rich.”
“Legislative and healthcare agenda uncertainty in U.S. combined with the further prospects of rising interest rates after the latest Fed comments leads to more cautiousness from investors,” said Attila Vajda, the Ho Chi Minh City-based managing director at Project Asia Research & Consulting Pte. “Thus stocks with perceived high valuations such as technology stocks are retreating on this cautiousness.”
The gauge of technology shares lost 1.6 percent, its biggest decline in seven months as Tencent dropped 1.8 percent and Samsung Electronics retreated 1.2 percent. Mitsubishi UFJ Financial Group Inc. rose 2.6 percent while Mizuho Financial Group Inc. advanced 3 percent.
- Topix index -0.3% after reaching the highest since Aug. 2015 on Tuesday; Nikkei 225 Index -0.5%
- Hang Seng Index -0.6%; Hang Seng China Enterprises Index -0.9%; Shanghai Composite Index -0.6%, Taiex Index -1.2%
- Kospi -0.4%; Kospi 200 index -0.4%
- Sensex Index -0.5%, Nifty 50 Index -0.3%
- Sensex Swings Between Gains, Losses Ahead of Derivatives Expiry
- Australia’s S&P/ASX 200 Index +0.7%
- Singapore’s Straits Times Index -0.2%; Philippine Stock Exchange Index -0.2%; Vietnam’s VN Index +0.2%; FTSE Bursa Malaysia KLCI Index -0.5%; Thailand’s SET Index -0.3%
- Indonesia closed for holiday
— With assistance by En Han Choong