Asian stocks ended mostly lower on Tuesday to extend recent losses amid worries about relentless Federal Reserve tightening and the escalation of the conflict in Ukraine following heavy Russian attacks.
Technology stocks bore the brunt of the selling as the United States intensified efforts to hobble China’s semiconductor industry.
China’s Shanghai Composite index rose 0.19 percent to 2,979.79 as a strong outlook from COSCO Shipping Holdings Co Ltd and Contemporary Amperex Technology Co Ltd helped offset mounting economic woes.
The Taiwan Weighted Index, which is heavily exposed to Chinese chipmaking stocks, plummeted 4.4 percent to a near two-year low, while Hong Kong’s Hang Seng index fell 2.23 percent to 16,832.36.
Japanese shares lost ground on worries about aggressive policy tightening in the wake of hawkish signals from Federal Reserve Vice Chair Lael Brainard.
Brainard on Monday said the central bank has no intentions of a dovish pivot in the near-term, and the actual policy path will be data dependent.
The Nikkei average fell 2.64 percent to 26,401.25 as traders returned from a three-day holiday weekend. The broader Topix index ended 1.86 percent lower at 1,871.24, marking its worst day since Sept. 26.
Tech stocks led losses, with chipmaking equipment manufacturer Tokyo Electron falling 5.5 percent.
Nidec Corp, a manufacturer and distributor of electric motors, plummeted 9.3 percent on share buyback allegations. The company denied a report that said it had engaged in inappropriate handling of share buybacks.
South Korea’s tech heavy Kospi average tumbled 1.83 percent to 2,192.07 as traders returned to their desks after a holiday on Monday.
Hyundai Motor lost 4.3 percent and its affiliate Kia plunged 5.1 percent on concerns that their competitiveness could be seriously hurt by the U.S. Inflation Reduction Act that excludes electric vehicles assembled outside the U.S. from tax incentives.
Australian markets fell for a third day running, as oil extended overnight loses and a survey showed Australian consumer confidence fell to its lowest level since mid-August last week.
The benchmark S&P/ASX 200 dropped 0.34 percent to 6,645 while the broader All Ordinaries index closed 0.40 percent lower at 6,844.30.
Across the Tasman, New Zealand’s S&P/NZX-50 index rose 0.35 percent to 10,956.71.
U.S. stocks closed lower for a fourth straight session overnight, as concerns over aggressive monetary policy tightening and increased geopolitical risks lifted the dollar gauge to the highest level this month.
The Dow slipped 0.3 percent, the S&P 500 shed 0.8 percent and the tech-heavy Nasdaq Composite fell 1 percent.
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