Rate-sensitive tech stocks fall in Japan, Hong Kong, Australia
04:16, 24 November 2021
Japan shares resumed trade on Wednesday to fall over 1% as rate-sensitive technology stocks led losses on expectations of a faster-than-expected tapering cycle following the renomination of Jerome Powell as the US Federal Reserve Chair.
Benchmark Nikkei 225 index fell 1.3% to 29,292 after lunch on Wednesday. Markets in Japan were shut for holiday on Tuesday. In the US, the tech-heavy Nasdaq index extended losses to close 0.5% down overnight.
Technology conglomerate Rakuten fell 3.9%, electronics manufacturer Fujitsu lost 3.2%, semiconductor-making equipment producer Advantest lost 4.3% and online gaming firm Nexon declined 5% and were among the top 10 intraday losers on the benchmark.
Tech stocks down across Asia-Pacific
Topix-17 IT & Services and Topix-17 Electric Appliances & PRE Instruments indices were the biggest losing sectoral indices on Wednesday, down 1.7% and 2.1%, respectively.
Meanwhile, energy and automobile stocks gained on Wednesday to limit losses in Tokyo. Mitsubishi Motors was the top gainer on the benchmark, up 4.3%.
Technology stocks in Hong Kong and Australia sported a similar trend. Hong Kong’s Hang Seng TECH index and Australia’s S&P/ASX All Technology index fell 0.6% and 0.5%, respectively.
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Gold stocks down
Aussie gold stocks fell 1.3% on Wednesday as bullion prices fell below the key $1,800 mark on the back of the rising dollar.
Overall, Australia’s benchmark S&P/ASX 200 index remained close to flat as energy gains countered mining and tech losses.
Hong Kong’s benchmark Hang Seng index saw real estate losses combine with tech stocks weakness to push the index 0.1% lower by lunch break on Wednesday. Alibaba Health Information Technology and Xiaomi were the worst performers in Hong Kong, down about 7% each.