Global markets: Asia down while Wall Street is affected by technology sales, the dollar sinks

TOKYO: Asian stock markets plummeted on Tuesday, causing heavy overnight losses on Wall Street, as technology companies were worried about slowing demand.

The largest MSCI index of Asia Pacific shares out of Japan fell 0.3%.

Australian equities lost 0.7% and South Korea's technology-driven shares fell 0.9%.

In Seoul, Samsung Electronics fell 2.1% and SK Hynix Inc. by 3%, while Japan's Tokyo Electron was down 2.5%, Advantest lost 1.8% and Sony Corp dropped 2.8 %.

Japan's Nikkei lost 1%. Shares of Nissan Motor Co have fallen about 6% after the arrest of its chairman, Carlos Ghosn, on Monday, on suspicion of financial foul, and will be dismissed from the board of directors this week.

US stocks were strong on Monday as Nasdaq plummeted by 3% as investors pulled out of Apple's shares, 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 cut short any stock market attempts to achieve a sustained rebound, and investor sentiment has been dampened by the continued weakness of US technology stocks," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management. in Tokyo.

Worries over a spike in corporate earnings growth as a result of rising borrowing costs, slowing global economic momentum, and international trade tensions have led to stock turmoil over the past two months.

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 US homebuilders' sentiment registered its biggest drop of one month over 4 ½ 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 dollar has rebounded strongly this year, supported by three Fed rate hikes and a robust economy, although some expect the rally to be over.

Long-term US Treasury yields tumbled to 3.052%, their lowest level in seven weeks, following weak equities and US housing, the dollar index versus a basket of six major currencies hovered around 96,120, a 11-day low on Monday.

The euro was little changed at 1.1445 USD after gaining 0.35% overnight.

The dollar slipped to a three-week low at 112.40 yen and traded at 112.48.

Futures on US crude increased 0.3% to $ 57.36, adding to yesterday's gains, supported by a reported reduction in US oil inventories, potential sanctions from the US dollar. European Union against Iran and possible cuts in the production of OPEC.