Japan’s Nikkei 225 has been the top performer this year, among large economy stock indexes in Asia and many believe that stocks in the region have more room to run in 2024.
Marco Bottigelli | Moment | Getty Images
Asia-Pacific markets plummeted as chip-related stocks dropped following reports of more stringent export restrictions from the U.S. and a build up of geopolitical feud fueled by comments from former U.S. President Donald Trump.
The Nasdaq Composite fell nearly 2.8% overnight — posting its worst day since December 2022.
The tech-heavy index slid 2.77% to end at 17,996.92 as investors continued to favor rate-sensitive stocks over big tech names amid optimism on possible rate cuts following Fed Chair Jerome Powell’s caution on keeping rates higher for longer.
Over in Asia, investors weighed Japan’s latest trade data.
Japan’s exports rose 5.4% year on year in June, a steep decline from 13.5% in May. Imports grew 3.2% year on year last month, down from 9.5% in May. Both exports and imports missed Reuters expectations of 6.4% and 9.3% respectively.
Japan’s trade balance reversed from 1.2 trillion yen deficit in May, or $7.7 billion, to a 224 billion yen surplus.
Japan’s Nikkei 225 declined more than 2%, while the Topix dropped 1.13%.
South Korea’s Kospi dipped 1.27%, while the small-cap Kosdaq lost 1.48%.
Australia’s benchmark index dipped marginally, as investors wait for employment data to be released later in the day.
Hong Kong’s Hang Seng index futures were at 17,685, lower than the HSI’s last close of 17,739.41.
Overnight in the U.S., the Dow Jones Industrial Average added 243.60 points, or 0.59%, to end at 41,198.08. This is the first time the index closed beyond 41,000. The broad S&P 500 shed 1.39%, with the information technology and communication services industries being the weakest performers in the session.
—CNBC’s Alex Harring and Pia Singh contributed to this report.