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Reuters
By Shinichi Saoshiro
TOKYO, Nov. 20 (Reuters) – Asian stock markets slid Tuesday and Europe is expected to follow, under pressure from heavy losses on Wall Street, as tech companies collapse amid fears of a stock market crash. a slowdown in demand.
The dollar sank after weak US data, which undermined confidence in the currency, while oil prices fell despite expected cuts from OPEC.
The broadest index of MSCI Asia Pacific shares out of Japan fell 1.2%.
Technology stocks were under pressure in Asia as a result of US losses. In Seoul, Samsung Electronics fell by 2%, SK Hynix Inc by 3.5%, Japan's Toky Electron by 1.8%, Advantest by 2.7% and Sony Corp by 3.1%.
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.
"The decline in US stocks will prevent any attempt by equity markets to make a sustained rebound." Investor sentiment has been defeated by continued weakness in US technology stocks, said Masahiro Ichikawa, chief strategist at Sumitomo Mitsui Asset Management in Tokyo. .
Japan's Nikkei fell 1.1% as shares of Nissan Motor Co fell more than 5% after the arrest of President Carlos Ghosn on Monday for financial misconduct. He will be fired from the board this week.
"This incident will encourage investors to check if Japanese corporate governance works," said Toru Ibayashi, executive director of Wealth Management at UBS Securities Japan.
Elsewhere in Asia, the Shanghai Composite Index fell by 1.7%, Australian equities by 0.4% and South Korea's high technology stocks by 1%.
Global equity markets have undergone a radical upheaval over the past two months, driven by concerns of a spike in corporate earnings growth, rising borrowing costs, slowing global economic momentum and international trade tensions. Billions of dollars were erased from the shares in October, a particularly scorching month.
In currencies, the dollar has collapsed to its lowest level for nearly two weeks against a basket of currencies.
Data released Monday shows that US homebuilders' sentiment 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 was little changed at 1.1450 USD after gaining 0.35% overnight.
The dollar slipped to a three-week low at 112.40 yen and traded at 112.55.
The Australian dollar, sensitive to changes in risk sentiment, extended the previous day's decline, slipping 0.3% to 0.7274 dollars.
Oil prices have weakened, with fears of slowing global demand and increased production in the United States exceeding planned supply-side reductions in the Organization of Petroleum Exporting Countries ( OPEC).
The US crude futures price fell 0.4% to 56.98 dollars a barrel and Brent 0.6% to 66.40 dollars a barrel.
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