Tech-heavy indexes were the worst performers in Asia, particularly those with a heavy weightage of chipmaking stocks
Most Asian stocks dropped on Wednesday, as technology shares, particularly chipmakers, were battered by a weak outlook from industry bellwether ASML.
Cooling optimism over Chinese stimulus measures also weighed, with Chinese markets mostly extending steep losses from the previous session.
Tech-heavy indexes were the worst performers in Asia, particularly those with a heavy weightage of chipmaking stocks.
Nikkei 225 index slipped 1.9%, weighed by a 13% drop in Lasertec Corp and a 10% decline in Tokyo Electron Ltd., while South Korea’s KOSPI skidded 0.7% on losses in SK Hynix Inc and Samsung Electronics Co Ltd.
The Dutch company is a leading supplier of cutting-edge chipmaking equipment, and acts as a bellwether for the sector.
Taiwan’s TSMC – the world’s biggest chipmaker- declined 2% in Taipei trade, tracking losses in ASML. TSMC is also considered as a bellwether for the industry, and is set to report its third-quarter earnings on Thursday.
Losses in tech weighed on most Asian markets.
Australia’s ASX 200 dropped 0.3% from record highs, weighed by a 1% decline in Rio Tinto Ltd after the miner’s quarterly production figures underwhelmed. Peer BHP Group Ltd – which will report its September quarter figures on Thursday – also slipped nearly 1%.
Futures for India’s Nifty 50 index pointed to a weak open, as the index struggled to make headway beyond 25,000 points. A slew of major Indian earnings are due this week.
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes dropped 0.8% and 0.2%, respectively, extending steep losses from the previous session. Hong Kong’s Hang Seng index slid marginally, although local tech stocks mostly ducked losses in their global peers.
While optimism over more stimulus in China, particularly fiscal measures, had initially boosted local stocks, they quickly unwound this rally as Beijing failed to provide clear details on the timing and scale of the planned measures.
Weak economic figures from China also furthered the case for more government support, as growth in its key exports dropped sharply, while disinflation persisted in September.