A global decline in technology stocks continued Tuesday in Asia, weighing on indexes in Japan and Taiwan.
“Technology shares are suffering heavy selling pressure as investors are rotating out from the valuation-rich sector in an attempt to lock in profits” amid continuing U.S. tax-reform efforts, said Margaret Yang, a market analyst at CMC Markets.
Worries about Brexit talks have also added to pessimism in global markets.
After the Nasdaq fell 1.1% Monday, the Nikkei NIK, -0.37% ended its morning session down 0.4%.
The Taiex Y9999, -0.79% shed 0.6% as index heavyweight Taiwan Semiconductor Manufacturing Co. 2330, -1.92% fell 1.9%. Samsung Electronics 005930, -0.31% fell 0.9% in Seoul, though the Kospi SEU, +0.24% was essentially flat due to strength from steel stocks.
Hong Kong’s benchmark was also weighed by tech, with the market’s biggest company, Tencent Holdings 0700, -1.96% , down 1.4%. The Hang Seng HSI, -0.57% was recently 0.5% lower, with new component Sunny Optical 2382, -4.85% skidding 5%.
In China, the startup-heavy ChiNext slid 1.2% and the Shenzhen Composite 399106, -1.82% fell 0.8%. But the CSI 300, made up of the biggest companies in Shenzhen and Shanghai SHCOMP, -0.23% , rose 0.2%.
Meanwhile, Australia’s S&P/ASX 200 XJO, -0.23% was down 0.2% as the local currency hit session highs following the release of better-than-expected retail sales growth data for October. As expected, the Reserve Bank of Australia did not make a change in interest rates.
Elsewhere in currencies, a modest overnight increase in yen strength added to pressure on Japan stocks. The U.S. dollar JPYUSD, -0.213047% was recently near ¥112.50, versus ¥112.80 when local equities trading ended Monday.
In other markets, bitcoin BTCUSD, +0.82% has been relatively steady over the past 24 hours and was recently at around $11,600, according to CoinDesk. Oil was slightly higher in Asia after falling more than 1% Monday.