ASIA MARKETS: Tech-stock Selloff Weighs On Asian Markets

By Ese Erheriene Features Dow Jones Newswires

Japan, Taiwan, Hong Kong indexes slip; Australia keeps rates steady

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A global decline in technology stocks continued Tuesday in Asia, weighing on indexes in Japan and Taiwan.

"Technology shares are suffering heavy selling pressure as investors are rotating out from the valuation-rich sector in an attempt to lock in profits" amid continuing U.S. tax-reform efforts, said Margaret Yang, a market analyst at CMC Markets.

Worries about Brexit talks have also added to pessimism in global markets.

After the Nasdaq fell 1.1% Monday, the Nikkei ended its morning session down 0.4%.

The Taiex shed 0.6% as index heavyweight Taiwan Semiconductor Manufacturing Co. (2330.TW) fell 1.9%. Samsung Electronics (005930.SE) fell 0.9% in Seoul, though the Kospi was essentially flat due to strength from steel stocks.

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Hong Kong's benchmark was also weighed by tech, with the market's biggest company, Tencent Holdings (0700.HK) , down 1.4%. The Hang Seng was recently 0.5% lower, with new component Sunny Optical (2382.HK) skidding 5%.

In China, the startup-heavy ChiNext slid 1.2% and the Shenzhen Composite fell 0.8%. But the CSI 300, made up of the biggest companies in Shenzhen and Shanghai , rose 0.2%.

Meanwhile, Australia's S&P/ASX 200 was down 0.2% as the local currency hit session highs following the release of better-than-expected retail sales growth data for October. As expected, the Reserve Bank of Australia did not make a change in interest rates.

Elsewhere in currencies, a modest overnight increase in yen strength added to pressure on Japan stocks. The U.S. dollar was recently near Yen112.50, versus Yen112.80 when local equities trading ended Monday.

In other markets, bitcoin has been relatively steady over the past 24 hours and was recently at around $11,600, according to CoinDesk. Oil was slightly higher in Asia after falling more than 1% Monday.

(END) Dow Jones Newswires

December 04, 2017 23:21 ET (04:21 GMT)