Wed. Oct 27th, 2021

A slide on Wall Street, led by losses for Big Tech businesses, spread to Asia on Tuesday morning, dragging Hong Kong’s technology index to its lowest level in six weeks and hitting equities across the region.

Overnight in the US the S&P fell 1.3 percent to the lowest closing price since the end of July, deducted by some of the largest technology companies, including Apple, Microsoft and Amazon. Facebook was one of the five worst performers in the index, with 4.9% as the most important services incurred interruptions.

Hong Kong’s benchmark Hang Seng index fell as much as 1.5 percent in early trading on Tuesday before recovering by midday. The Hang Seng Tech Index, which tracks the largest technology groups in the city, has dropped to 2.5 percent to its lowest level since 20 August, when it reached a low of almost 10 months.

The tumble in US shares, coupled with concerns about the financial health of China Evergrande after the guilty real estate developer trade stopped in its shares Monday, shares in Asia have drifted to some of the lowest levels in recent months.

The Japanese Topix lost up to 2.3 percent in morning trading thereafter Fumio Kishida’s appointment Monday as premier. South Korea’s Kospi fell to 2.6 percent with its last close on Friday last week, taking the index to its lowest level since March.

Australia’s S & P / ASX 200 fell by about 1 per cent, following the regional trend of losses in the previous two trading sessions.

Pessimism about technology stocks has grown in US financial markets in recent weeks over expectations that the Federal Reserve will start turn back his stimulus support. The tech-heavy Nasdaq Composite was 7.5 percent lower than a record last month after falling 2.1 percent on Monday.

Facebook shares were particularly hard hit as investors took the testimony of a whistleblower during a Senate hearing Tuesday that claimed the social media business was reducing the extent of disinformation and adverse health effects on its platform.

Oil prices rose further in Asian trade after rising seven year highlights Monday on the resistance of Opec and its allies to accelerate production increases despite the growing global energy shortage. Brent, the international benchmark, and West Texas Intermediate, the US oil brand, rose slightly while the crude futures contract in Tokyo rose by 2% to its highest level in three years.

Markets in mainland China were closed for the national holiday.

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