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A sharp selloff in U.S. stocks spilled over into Asian markets, with technology stocks from the United States to China falling the hardest, as investors refocused on global slowing growth, rising bond yields and increasing trade tensions.
Stock indexes in mainland China, Hong Kong and Japan all dropped more than 2.5% on Thursday morning, extending their recent slides. Taiwan's Taiex index, dominated by semiconductor companies and Apple Inc. suppliers, fell the most, down more than 5%.
Tencent Holdings
Ltd.
, the most valuable company listed in Asia, for more information on the subject. Tencent has lost about one-third of its market value this year, hurt in part because of the growth of the market. Other Chinese tech giants such as
Baidu
Inc.
and Alibaba Group Holding Ltd., both of which are listed in the U.S., also fell sharply.
Tencent has lost about one-third of its market value this year.
Photo:
aly song / Reuters
While the selloff adds to the breadth of many years, U.S. stocks have become much more turbulence. That changed Wednesday, with the Dow Jones Industrial Average falling 832 points, or 3.2%, and the tech-heavy Nasdaq Composite skidding 4.1%, its worst decline since June 2016, when the Brexit vote concluded.
"The sharp selloff in the U.S. has made no surprise," said Paras Anand, head of asset management for Asia Pacific at Fidelity International. "If anything, market participants have been wondering how, in the face of tighter money, the U.S. has continued to be resilient."
The NYSE FANG + Index-which tracks global heavyweights including U.S. and Chinese tech-giants-fell 5.6% on Wednesday, its second-worst decline on record. It is down 10% so far in October.
The latest growth in the growth of the economy and the growth of the stock market in the United States. President Trumpcalled out the U.S. central bank on Wednesday, saying "the Fed has gone crazy," as it continues to tighten monetary policy.
"The rise in Treasury yields has been the primary catalyst for the selloff in equities," said Steven Friedman, senior economist at BNP Paribas Asset Management, who added that higher bond yields are less attractive to potential buyers.
"Equity investors are growing concerned that the [Fed]Choke off the expansion, "he said.
Meanwhile, trade tensions between the United States and China are still rising and falling in the global economy.
The yuan remains at its weakest level of the year in offshore markets, down another 0.2% at 6.938 to the dollar. This week, the offshore bankruptcy of the United States of America.
The yuan has not passed 7 to the dollar in over a decade. In 2015 and 2016 when the currency weakened sharply, the depreciation sparked capital outflows from China, an outcome that Beijing is eager to avoid this time around.
Write to Steven Russolillo at [email protected] and Mike Bird at [email protected]
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