Checkout
Cart: $0.00 - (0 items )

Asia tech stocks follow US counterparts into the red

Monday 03:15 BST

Overview

Markets around Asia were mixed as investors weighed a sharp drop in US tech stocks on Friday and the UK election result that delivered a hung parliament.

Hot topic

Technology stocks in the US, including Alphabet, Apple, Facebook, Microsoft and Netflix, sold off on Friday. The S&P 500 technology sector dropped 4.2 per cent, while the broader S&P 500 benchmark dropped 0.1 per cent and the Nasdaq Composite shed 1.8 per cent.

Tech stocks have been the big gainers in many global markets this year and while the reason for Friday’s tumble was not immediately clear, some strategists suggested investors were locking in gains after strong runs.

Many of Asia’s biggest tech names were under pressure on Monday. Chinese social network Tencent was down 1.2 per cent in Hong Kong and among the worst performers in the benchmark Hang Seng Index. AAC Technologies, an Apple supplier that has been the subject of a recent short-seller attack, was down 2.5 per cent and the worst off in the Hang Seng.

In Japan, Alps Electric, also an Apple supplier, was down 3.2 per cent and SoftBank was down 2.6 per cent, putting them among the worst performers in the Nikkei 225. IT was the worst performing sector, down 1.2 per cent, in the benchmark Topix.

Netmarble, a newly listed mobile game maker, was down 4 per cent and among the worst performer’s in South Korea’s Kospi Composite, while internet operator Naver shed 5.4 per cent.

China’s technology-focused Shenzhen Composite was down 0.4 per cent.

Equities

Japan’s Topix was up 0.2 per cent but declines for big names such as SoftBank and Uniqlo owner Fast Retailing pulled the Nikkei 225 down 0.4 per cent.

Hong Kong’s Hang Seng was off 0.4 per cent, while China’s Shanghai Composite gained 0.1 per cent.

Singapore’s Straits Time was up 0.3 per cent. Markets in Australia were shut for a public holiday.

Forex

The British pound was flat at $1.2747, having shed 1.6 per cent on Friday as the UK’s general election resulted in a hung parliament. It was the pound’s second-biggest one-day drop since October last year.

Major currencies were mostly making marginal gains against the US dollar on Monday. The dollar index, a measure of the US currency against a basket of global peers, was fractionally weaker at 97.236 after three straight days of gains.

The Japanese yen was flat at ¥110.31 per dollar, paring early gains tacked on after data showed wholesale inflation held steady in May and despite a surprise drop in machine orders, which are a popular proxy for capital expenditure.

Commodities

Oil prices were firming. Brent crude, the international benchmark, up 0.5 per cent at $48.37 a barrel while West Texas Intermediate gained 0.5 per cent to $46.06.

Gold was up 0.1 per cent at $1,267.44 an ounce.

For market updates and comment follow us on Twitter @FTMarkets