TOKYO (Reuters) – Asian stock markets stalled on Tuesday, increasing sharp losses on Wall Street, as technology companies bore the brunt of concern about weakening demand, while the dollar failed after weak US data, which further strengthened confidence to currency.
A person walks past an electronic quotation table outside a brokerage company in Tokyo, Japan, on November 13, 2018. REUTERS / Toru Hanai
The largest MSCI index in the Asia-Pacific region outside Japan fell by 0.9 percent.
The Shanghai Composite Index dropped 1 percent, Australian stocks lost 0.9 percent, and high-tech South Korean stocks fell 0.8 percent.
In Seoul, Samsung Electronics fell 1.8 percent, while SK Hynix Inc fell 2.8 percent, while Tokyo Electron in Japan fell 1.4 percent, Advantest lost 1.2 percent, and Sony Corp lost 2.6 percent.
Japanese Nikkei decreased by 0.9 percent. Shares of Nissan Motor Co fell 4.3% after its chairman, Carlos Ghosn, was arrested Monday for alleged financial misconduct and will be fired from the board this week.
“Because of insufficient reporting on his corporate salary, he basically deprived Nissan shareholders of the opportunity to assess whether his salary was consistent,” said Toru Ibajasi, executive director of Wealth Management at UBS Securities Japan. "This incident will force investors to consider if Japanese corporate governance is working."
US stocks fell as a result of high sales on Monday, when Nasdaq fell 3 percent, as investors threw stocks of Apple, the Internet and other technologies. Conflicting signals between the United States and China over their trade dispute are added to caution. [.N]
“The decline in stocks in the US will interrupt any attempts by stock markets to restrain a steady rebound. Investors are set to weaken US weakness, ”said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management in Tokyo.
Anxiety about the peak of corporate profits growth amid rising borrowing costs, slowing global growth and tensions in international trade caused a shock in stocks over the past two months, and trillions of dollars erased stocks, especially in the hot month of October.
In currencies, the dollar struggled with an almost two-week low against a basket of currencies.
The dollar was hit after data released on Monday showed that the mood of the US home builder recorded its steepest monthly decline in 4-1 / 2 years in November.
The dollar was also lowered after Fed Vice Chairman Richard Clarida and President of the Federal Reserve System of Dallas Robert Kaplan raised concerns over a possible global recession last week.
This year, the US currency has stabilized, helped by three rate hikes in the Fed and a stable economy, although some expect the bullfight to be over.
With a long-term decline in the yield of US Treasury bonds to a seven-week low of 3.052 percent after weak stocks and data on the US housing stock, the dollar index versus a basket of six major currencies fluctuated around 96.120, the 11-day low fell on Monday,
The euro has changed slightly at $ 1.1448, receiving 0.35 percent per night.
The dollar fell to a three-week low of 112.40 yen and last traded at 112.58.
The Australian dollar, sensitive to shifts in risk sentiment, was stable at a level of 0.7294 dollars after a loss of 0.5 percent of the previous day.
Crude oil got out of control after the day before it was reported about the reduction of oil reserves in the US, about possible sanctions of the European Union against Iran and possible reductions in the production of OPEC.
US oil futures fell at $ 57.20 per barrel, while Brent fell 0.1 percent to $ 66.72 per barrel. [O/R]
Additional reporting by Aija Tomisawa in Tokyo; Editing by Shri Navaratnam