Tech stocks in Asia fall dragging down Hong Kong’s Hang Seng by nearly 3%

SINGAPORE – Shares in Asia-Pacific fell during Tuesday morning trade after heavy losses overnight on Wall Street that saw the tech-heavy Nasdaq Composite dropping more than 4%.

Hong Kong’s Hang Seng index, returning to trade following a Monday holiday, fell 3% in early trade on Tuesday morning.

Hong Kong-listed shares of Chinese tech firms dropped, with Tencent declining 3.55% while Alibaba shed 6% and NetEase fell 3.54%. The Hang Seng Tech index traded 5.11% lower.

Technology shares elsewhere in Asia-Pacific also declined in Tuesday morning trade, largely mirroring losses after the Nasdaq Composite dropped 4.29% overnight to 11,623.25.

On Tuesday morning, shares of Japanese conglomerate SoftBank Group fell 4.61%. South Korea’s Cocoa shed 2% while Krafton fell 2.98%.

In the broader markets, the Shanghai Composite in mainland China fell more than 1% while the Shenzhen Component dipped 1.661%.

The Nikkei 225 in Japan fell 1.86% as shares of Fast Retailing dropped more than 2%. The Topix index traded 1.74% lower.

South Korea’s Kospi dropped 1.85% while the S & P / ASX 200 in Australia fell 2.27%.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 2.22% lower.

“A sea of ​​red engulfed most major risk assets overnight,” analysts at OCBC Treasury Research said in a Tuesday note. “Asian markets may start off on a cautious note today, following the battering on Wall Street last night.”

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Other major indexes on Wall Street also saw substantial losses overnight, with the S&P 500 slipping 3.2% to 3,991.24 – falling below the 4,000 level for the first time in more than a year. The Dow Jones Industrial Average shed 653.67 points, or 1.99%, to 32,245.70.

Currencies and oil

The US dollar index, which tracks the greenback against a basket of its peers, was at 103,663 – off levels above 103.8 seen recently.

The Japanese yen traded at 130.18 per dollar, stronger than levels above 130.5 seen against the greenback yesterday. The Australian dollar was at $ 0.6921, struggling to recover after last week’s drop from above $ 0.72.

Oil prices were lower in the morning of Asia trading hours, with international benchmark Brent crude futures slipping 2.21% to $ 103.58 per barrel. US crude futures shed 2.2% to $ 100.8 per barrel.

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