Asian stocks fell on Wednesday after a tech selloff on the Nasdaq overnight amid heightened expectations of a rate hike by the Federal Reserve. Traders expect the Fed to deliver a half-point interest rate hike in March despite some negative economic data.
Chinese shares saw modest losses, with the benchmark Shanghai Composite index ending down 11.73 points, or 0.33 percent, at 3,558.18, dragged down by electric vehicle makers and healthcare firms. Hong Kong’s Hang Seng index finished marginally higher at 24,127.85.
Japanese shares hit a five-month low, with exporters Sony Group and Toyota Motors leading losses. The Nikkei average plummeted 790.02 points, or 2.80 percent, to 27,467.23 – its lowest since Aug. 20. The broader Topix index closed 2.97 percent lower at 1,919.72.
Sony Group sank 12.8 percent after gaming rival Microsoft said it plans to buy mega games company Activision Blizzard. Toyota Motor gave up 5 percent after the automaker said it expects to miss its annual 9 million vehicle production target due to chip disruptions.
Australian markets followed Wall Street lower after inflation concerns sent U.S. bond yields higher. The benchmark S&P/ASX 200 index dropped 76.30 points, or 1.03 percent, to 7,332.50 while the broader All Ordinaries index ended down 79.20 points, or 1.02 percent, at 7,656.60.
Tech stocks led loses, with heavyweight Afterpay losing 2.2 percent. Financials also fell broadly, with Macquarie Group tumbling 3.7 percent. Lynas Rare Earths dropped 1.1 percent despite the company posting record second-quarter revenue.
Energy stocks bucked the weak trend, with Santos and Woodside Petroleum rising 1.8 percent and 0.9 percent, respectively ahead of their production figures scheduled to be released on Thursday.
In economic releases, a measure of Australian consumer sentiment slipped in January as a surge in coronavirus cases soured the national mood.
Seoul stocks fell for the fifth day running on rate hike concerns. The benchmark Kospi ended a choppy session down 21.96 points, or 0.77 percent, at 2,842.28.
Chemical firm LG Chem plunged 5.9 percent while pharmaceutical giant Samsung Biologics rose 1.2 percent and its rival Celltrion added 4.7 percent.
New Zealand shares fell the most in year following Wall Street’s overnight sell-off on concerns about surging inflation and higher interest rates. The benchmark NZX-50 index plunged 202.15 points, or 1.58 percent, to 12,612.31. Top stock Fisher & Paykel Healthcare lost 3.2 percent.
U.S. stocks tumbled overnight as Treasury yields surged to two-year highs and Goldman Sachs posted quarterly profit that missed market expectations.
The Dow lost 1.5 percent, the tech-heavy Nasdaq Composite sank 2.6 percent and the S&P 500 declined 1.8 percent.
Asian Shares Retreat On Rate Worries
2022-01-19 08:41:51
