A global selloff in stocks continued in Asia on Tuesday amid concern that surging prices for raw materials such as crude oil will stoke inflation and sap economic momentum. Asian stocks look set to fall Tuesday after technology shares led a US slide amid concern that surging raw-material prices will stoke inflation and sap economic momentum. Stocks slipped in Australia, as did equity futures for Japan and Hong Kong. Nasdaq 100 shed over 2%, dragged down by megacap tech firms such as Amazon.com Inc. and Facebook Inc. The energy sector was among the few to rise in the US session.
China tech stock gauge hits lowest level on yields, crackdown
A benchmark tracking Chinese technology giants in Hong Kong slumped, on track for a new record low on Tuesday as a global tech selloff triggered by rising US Treasury yields adds to concerns over Beijing’s regulatory crackdown. The Hang Seng Tech Index dropped as much as 2.5% to slip below the previous record closing low on Aug. 20. The gauge, which counts Tencent Holdings Ltd. and Alibaba Group Holding Ltd. as key members, is set for a fourth consecutive weekly decline. The measure, officially launched in July last year, is down some 47% since its February peak and its members have lost about $1.4 trillion in market value, according to Bloomberg-compiled data.
Stocks extend drop on risks from inflation, China
A global selloff in stocks continued in Asia on Tuesday amid concerns that surging prices for raw materials such as crude oil will stoke inflation and sap economic momentum. Shares declined in Japan, South Korea and Australia. US contracts stabilized after the S&P 500 retreated to the lowest since July and the Nasdaq 100 shed over 2%, dragged down by megacap tech firms such as Amazon.com Inc. and Facebook Inc. The energy sector was among the few to rise in the US session. Ten-year U.S. Treasury yields held a climb toward 1.5% and the dollar remained lower. Oil in New York reached the highest since 2014 following OPEC+’s decision to maintain a gradual supply hike even as a natural-gas crisis boosts crude demand. The Bloomberg Commodity Spot Index soared to an all-time peak.
S&P 500 futures were flat as of 9:15 a.m. in Tokyo. The S&P 500 fell 1.3%
Nasdaq 100 futures increased 0.1%. The Nasdaq 100 fell 2.2%
Japan’s Topix index shed 1.2%
Australia’s S&P/ASX 200 Index lost 0.3%
South Korea’s Kospi index fell 1%
Hang Seng Index futures fell 0.1% earlier
How major US stock indices fared on Monday
Stocks closed lower on Monday as big technology companies such as Apple and Microsoft took losses. The S&P 500, the Dow Jones Industrial Average and the tech-heavy Nasdaq all fell. Meanwhile, the price of US oil rose to its highest close since 2014, as OPEC and allied oil producers stuck to a plan for cautious production increases even as global demand for crude rises.
The S&P 500 fell 56.58 points, or 1.3%, to 4,300.46.
The Dow Jones Industrial Average fell 323.54 points, or 0.9%, to 34,002.92.
The Nasdaq fell 311.21 points, or 2.1%, to 14,255.48.
The Russell 2000 index of smaller companies fell 24.16 points, or 1.1%, to 2,217.47.
Never miss a story! Stay connected and informed with Mint.
our App Now!!