(RTTNews) – Asian stocks fell broadly on Thursday as tech stocks came under heavy selling pressure on signs of worsening trade tensions between China and the United States.
Media reports say Washington is considering tightening controls on exports of advanced semiconductor technology to China.
Meanwhile, Republican presidential candidate Donald Trump, in a controversial interview, suggested Taiwan should pay for its defense.
The dollar was trading near a four-month low in Asian markets after the Japanese yen hit a six-week high, sparking speculation of government intervention.
Gold approached an all-time high on expectations of a U.S. interest rate cut, while crude oil continued to rise from the previous day’s trading on a decline in U.S. crude oil inventories.
China’s Shanghai Composite Index rose 0.48% to 2,977.13 and Hong Kong’s Hang Seng Index added 0.22% to 17,778.41 as investors hoped for policies to spur a recovery in growth after a top-level Communist Party meeting.
Japanese stocks fell sharply on a sell-off in technology stocks, and export-related problems were exacerbated by the yen’s rise against the dollar.
The Nikkei Stock Average fell 2.36% to 40,126.35, while the Tokyo Stock Price Index fell 1.60% to 2,868.63.
Tokyo Electron, which exports advanced semiconductor technology to China, plunged 8.8%, Screen Holdings slumped 8.4%, Advantest 4.9% and SoftBank Group 6.1%.
Investors ignored data showing Japan posted its first trade surplus in three months in June.
The Seoul stock market ended lower, dragged down by losses in tech shares, with the KOSPI average down 0.67 percent to 2,824.35.
Shares in SK Hynix fell 3.6 percent and automaker Hyundai Motor fell 3 percent, while shipbuilder Samsung Heavy Industries rose 1.3 percent.
Australian shares fell from highs hit the previous day after data showed a larger-than-expected surge in employment in June, raising concerns about interest rate hikes.
The benchmark S&P/ASX 200 fell 0.27 per cent to 8,036.50, with banking and technology stocks leading the decline, while the All Ordinaries Index closed 0.37 per cent lower at 8,272.70.
Domino’s Pizza Enterprises Inc.’s shares plunged 8.2% after the company reported a weak outlook for store growth.
Across the Tasman Sea, New Zealand’s benchmark S&P/NZX-50 index rose 0.30% to 12,329.44.
U.S. stocks ended mixed overnight as shares of semiconductor makers and major companies fell on valuation concerns.
On the economic front, data showed housing starts and building permits rebounded in June. A measure of U.S. industrial production fell in the month but beat analysts’ expectations.
The tech-heavy Nasdaq Composite Index plunged 2.8% after talk of tougher regulations to curb China’s semiconductor industry and President Trump’s comments that Taiwan should pay more for its defense. The S&P 500 fell 1.4%, while the Dow rose 0.6%.
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