Hong Kong leads Asia losses as tech stocks drag most markets

SINGAPORE – Most Asia-Pacific markets fell on Tuesday after heavy overnight losses on Wall Street that saw the tech-heavy Nasdaq Composite drop more than 4%.

Returning to trading after a holiday on Monday, Hong Kong’s Hang Seng Index closed down 1.84% on Tuesday at 19,633.69.

Shares of Hong Kong-listed Chinese tech companies fell, with Tencent falling 2.29%, while Alibaba lost 4.81% and NetEase fell 1.91%. The Hang Seng Tech Index fell 3.22% to 3,906.43.

Technology stocks elsewhere in Asia-Pacific also fell in trading on Tuesday, largely reflecting losses after the Nasdaq Composite fell 4.29% overnight to 11,623.25.

Shares of Japanese conglomerate SoftBank Group fell 1.78%. South Korea’s Kakao lost 0.59%, while Krafton fell 2.58%.

“I think the big picture will continue to be one of higher bond yields and tighter monetary policy that will ultimately work against tech stocks,” said Shane Oliver, chief investment strategist and chief economist at AMP. Capital, to CNBC’s “Street Signs Asia” on Tuesday.

“Beyond any short-term rebound from overselling, I’m not too sure [on the tech sector]Oliver said. “I tend to prefer cyclicals, resource stocks, industrials.”

In broader markets, Japan’s Nikkei 225 fell 0.58% to close at 26,167.10 while the Topix index fell 0.85% to 1,862.38.

South Korea’s Kospi fell 0.55% on the day to 2,596.56 while Australia’s S&P/ASX 200 fell 0.98% to close at 7,051.20.

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Mainland China stocks bucked the general trend and outperformed the region as a whole. The Shanghai Composite recovered from earlier losses to close 1.06% higher at 3,035.84, while the Shenzhen Component rose 1.367% to 10,912.74.

MSCI’s broader index of Asia-Pacific stocks outside of Japan fell 0.82%.

Other major Wall Street indices also saw substantial losses overnight, with the S&P 500 falling 3.2% to 3,991.24, dipping below the 4,000 level for the first time in more than a year. The Dow Jones Industrial Average lost 653.67 points, or 1.99%, to 32,245.70.

foreign exchange and oil

The US Dollar Index, which tracks the greenback against a basket of its peers, was at 103.707, still below levels above 103.8 seen recently.

The Japanese yen traded at 130.2 per dollar, stronger than the levels above 130.5 seen against the dollar yesterday. The Australian dollar was at $0.6963, struggling to recover after last week’s drop from over $0.72.

Oil prices rose in afternoon Asian trading hours, with international benchmark Brent crude futures rising 1.45% to $104.40 a barrel. US crude futures rose 1.44% to $101.6 a barrel.

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