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TOKYO (Reuters) – Global stock markets have extended a massive sell-off on Tuesday, with the US and other major economies pushing investors away from riskier assets as Chinese markets are most concerned about worries. investors.
The tense backdrop raised the values of the US Treasury and kept the dollar on the defensive as the financial markets worried about the overall economic fallout from the "America First" agenda of the administration. Trump.
Asian stocks plunged into a sea of red after Wall Street tumbled overnight, with the S & P 500 and Nasdaq suffering their biggest losses in more than two months overnight. [.N]
Markets in China – the epicenter of trade tensions with the United States – have been the most affected.
The broadest index of MSCI Asia Pacific shares outside Japan fell 0.35%.
The Hong Kong Hang Seng fell 0.4%, the Shanghai Composite Index 0.8% and the Japanese Nikkei 0.2%.
Shares of technology-intensive regions, such as KOSPI and Taiwan, fell by 0.9% and 0.75% respectively.
Taiwan Semiconductor Manufacturing Co. lost 1.8%, South Korean SK Hynix Inc. lost 1.55% and Japanese Tokyo Electron 1.45%. Chinese tech giant Tencent Holdings plummeted 1.7%.
The share of Asian technologies fell after their US counterparts, who derive much of their revenue from China, were beaten overnight.
On Monday, the US Treasury Department drafted restrictions that would prevent companies with at least 25 percent of Chinese owners from buying US technology companies.
"Unlike President Trump's tweets and retaliatory price swapping, Washington's attempt to protect intellectual property is at the heart of a conflict between two powers fighting for world supremacy," Yoshimasa Maruyama writes. . , chief economist at SMBC Nikko Securities in Tokyo.
In addition to trade talks with China, the United States has recently raised the bar by challenging the European Union by threatening to impose tariffs on cars imported from the bloc.
"The increasingly belligerent commercial rhetoric that the United States employs could begin to influence the economy by cooling investor sentiment and reducing corporate capital spending," said Masahiro Ichikawa, strategist at Sumitomo Mitsui. Asset Management.
"It turns out to be a long-term bearish for the financial markets because it is unlikely that the United States will recede at least through its mid-term elections."
The dollar index against a basket of six major currencies plunged 0.1 percent to 94,193 and headed for its fifth consecutive day of losses.
The greenback has come under pressure as long – term yields in the US Treasury have fallen to lows of one week due to heightened risk aversion on the financial markets.
The euro added to yesterday's gains and hit a two-week high of $ 1.1722.
The dollar was down 0.3 percent to 109,450 yen, after falling to a two-week low of 109,365 on Monday. The yen often attracts bids in times of political turmoil and market turmoil.
Brent crude oil futures increased by 0.07% to $ 74.78, due to uncertainty surrounding Libyan exports. Contracts had slipped 1% overnight, as appetite for investors' risk of decline weighed on commodities. [O/R]
Oil prices were capped after OPEC and its allies agreed Friday to increase the global supply, albeit modestly.
Trade concerns have kept copper at the London Metal Exchange near a 2 and a half year low of $ 6,702.5 a ton on Monday. Spot gold lost 0.1% to $ 1,263.56 an ounce.
Reportage by Shinichi Saoshiro; Editing by Shri Navaratnam
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