Asian stocks close lower as NY tech stocks tumble

Asian stocks closed lower on Thursday (12), as technology stocks were pressured by a fall in the Nasdaq in New York last Wednesday.

In Hong Kong, the Hang Seng index fell 2.24% to 19,380.34 points. Only the local technology sub-index fell by 3.8%. In Taiwan, the Taiex retreated 2.43%, to 15,616.68 points.

Chipmaker Taiwan Semiconductor Manufacturing Co., for example, lost 3.07%.

Last Wednesday, New York stock exchanges suffered strong losses after the release of US consumer inflation (CPI) data that exceeded expectations and reinforced expectations that the Federal Reserve (Fed, the American central bank) will continue to raise interest rates aggressively in the coming months.

The Nasdaq, which is largely made up of “big techs” sensitive to interest rate fluctuations, fell 3.18%.

Elsewhere in Asia, Japan’s Nikkei fell 1.77% in Tokyo today, at 25,748.72 points, while South Korean Kospi fell 1.63% in Seoul, at 2,550.08 points, ending the trading session in lowest level since November 2020.

In mainland China, purses were more restrained. The Shanghai Composite posted a modest 0.12% loss to 3,054.99 points, while the less comprehensive Shenzhen Composite edged past Asia’s negative bias and rose 0.16% to 1,921.65 points.

Recent data showed a significant decline in the number of new Covid-19 infections in the city of Shanghai.

In Oceania, the Australian stock market was also influenced by the Nasdaq. The S&P/ASX 200 fell 1.75% in Sydney to 6,941.00 points.

In the tech sector, the decline was 8.7%, its worst day since the Covid-19 pandemic churned global markets in March 2020.