Stock markets collapse as a result of massive sales in the technology sector and the decline of the dollar

TOKYO (Reuters) – Asian stock markets slid Tuesday, prolonging heavy losses on Wall Street as tech companies feared a drop in demand, while the dollar weakened after weak US statistics.

The broadest MSCI Asia-Pacific equity index out of Japan fell 0.9%.

The Shanghai Composite Index fell 1%, Australian stocks 0.9% and South Korea's technology-intensive shares 0.8%.

In Seoul, Samsung Electronics lost 1.8% and SK Hynix Inc, 2.8%, while Japan's Tokyo Electron was down 1.4%, Advantest lost 1.2% and Sony Corp dropped 2, 6%.

Japan's Nikkei slipped 0.9%. Shares of Nissan Motor Co fell 4.3% after the arrest of its chairman, Carlos Ghosn, on Monday, on suspicion of financial misconduct, and will be removed from the board of directors this week.

"By underreporting his salary, he essentially deprived Nissan shareholders of the possibility of judging whether the amount of his salary was appropriate," said Toru Ibayashi, executive director of Wealth Management at UBS Securities Japan. "This incident will encourage investors to consider whether Japanese corporate governance works."

US stocks had a strong sell on Monday as Nasdaq plummeted 3% as investors dropped Apple, the Internet and other technologies. Conflicting signals between the United States and China over their trade dispute added to caution. [.N]

"The decline in US stocks will cut short any attempt by stock markets to make a sustained rebound. Investor sentiment has been dampened by continued weakness in US technology stocks, "said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management in Tokyo.

Concerns about a peak in corporate earnings growth as a result of rising borrowing costs, slowing global economic momentum, and international trade tensions have led to stock dislocation over the past two years. months, trillions of dollars having erased the shares in October, particularly hot month.

In currencies, the dollar has collapsed to its lowest level for nearly two weeks against a basket of currencies.

The greenback was hit after data released on Monday showed the sentiment of US homebuilders had registered its biggest one-month drop in four and a half years in November.

The dollar was also sealed after Fed Vice President Richard Clarida and Dallas Fed President Robert Kaplan voiced concerns over a possible global slowdown.

The US currency has rebounded strongly this year, supported by three Fed rate hikes and a robust economy, although some expect the uptrend to come to an end.

While long-term US Treasury yields have fallen to 3.052%, their lowest level in seven weeks, as a result of weak equities and the US housing market, the dollar index has been close to 96.120 against a basket of six major currencies. .

The euro has changed little at $ 1.1488 after gaining 0.35% in one night.

The dollar slipped to a three-week low at 112.40 yen and traded at 112.58.

The Australian dollar, sensitive to changes in risk sentiment, remained stable at 0.7294 USD after losing 0.5% the day before.

Crude oil is out of breath after gaining the day before due to a reduction in US oil stocks, possible sanctions from the European Union against Iran and a possible reduction in the production of OPEC.

The US crude futures price remained unchanged at $ 57.20 a barrel and Brent slipped 0.1% to $ 66.72 a barrel. [O/R]