Article content
BANGKOK (AP) — Tokyo’s benchmark Nikkei 225 index dipped more than 4% on Wednesday and other shares in Asia also were mostly lower after a retreat on Wall Street spurred by selling of Big Tech shares.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
Exclusive articles from Barbara Shecter, Joe O’Connor, Gabriel Friedman, and others. Daily content from Financial Times, the world’s leading global business publication. Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account. National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles, including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
Exclusive articles from Barbara Shecter, Joe O’Connor, Gabriel Friedman and others. Daily content from Financial Times, the world’s leading global business publication. Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account. National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles, including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Sign In or Create an Account or
Article content
U.S. futures were mixed and oil prices also fell.
Article content
Article content
The Nikkei fell nearly 5% early in the session but was down 2.8% by mid-afternoon, at 50,090.33.
Article content
Shares in energy and tech giant SoftBank Group sank 9.8% on jitters over its investments in artificial intelligence. Computer chip maker Tokyo Electron dropped 4.1%, while stock in Advantest Corp., a maker of semiconductor testing equipment, lost 7.2%.
Article content
Article content
South Korea’s Kospi declined 3% to 3,997.71 as Samsung Electronics shed 4.9%. SK Hynix, which had logged major gains thanks to plans to develop artificial intelligence with chip maker Nvidia, lost 2.9%.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
Chinese markets were less affected. The Shanghai Composite index recovered from modest earlier losses to edge 0.2% higher, to 3,967.53. Hong Kong’s Hang Seng declined 0.3% to 25,888.16.
Article content
Investors took fright from heavy selling of high tech related shares overnight on Wall Street. The technology sector has been driving gains this year, and huge values for companies including Nvidia and Microsoft give them outsized influence over the broader market’s direction.
Article content
“The rally that began in April is finally feeling its age. What we are seeing today wasn’t just a dip; it was a full-scale reality check,” Stephen Innes of SPI Asset Management said in a commentary.
Article content
“This wasn’t the usual intraday shake-out. It felt more like the oxygen suddenly thinning at the top of a mountain that everyone assumed had no summit,” he said.
Article content
Palantir Technologies, which had more than doubled so far this year, fell 7.9% despite reporting results that beat analysts’ forecasts. Nvidia also reversed course from a day earlier, falling 4%, while Microsoft fell 0.5%.
Article content
Article content
Other sectors also declined, leading the S&P 500 to fall 1.2% to 6,771.55. The index set its most recent all-time high last week, and is still up more than 15% for the year.
Article content
The Dow Jones Industrial Average fell 0.5% to 47,085.24. The technology heavy Nasdaq fell 2% to 23,348.64.
Article content
Wall Street remains focused on corporate earnings. Roughly three out of every four companies within the S&P 500 have reported their latest results, and most have been better than analysts expected.
Article content
Uber slumped 5.1% despite reporting financial results that beat analysts’ expectations.
Article content
Several big companies will report their latest financial results later this week, including McDonald’s, Expedia Group and Qualcomm.
Article content
The latest round of corporate profit reports and forecasts have taken on more significance for Wall Street due to the U.S. government shutdown. Investors and economists are trying to gauge the health and direction of the U.S. economy without the latest economic updates on inflation and employment.
Article content
The lack of timely economic data has also left the Federal Reserve without many of the resources it needs to make decisions on interest rate policy. The latest data showed consumer prices rose 3% in September, the highest increase since January. At the same time, hiring has stalled. That mix of conditions puts the U.S. Federal Reserve in a tough position. Cutting rates to help the economy endure a weakening job market could also result in hotter inflation.
https://financialpost.com/pmn/asian-shares-sink-after-losses-for-big-tech-pull-us-stocks-lower
