Japan’s Nikkei 225 has been the best performer among Asia’s large economic indexes this year, and many believe the region’s stocks have more room to rise in 2024.
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Chip-related stocks fell and Asia-Pacific markets tumbled amid reports that the United States had imposed stricter export restrictions and that comments by former U.S. President Trump intensified geopolitical disputes.
this Nasdaq Index It fell nearly 2.8% overnight, marking its worst day since December 2022.
The tech-heavy index fell 2.77% to close at 17,996.92 as investors grew optimistic about a potential rate cut after Federal Reserve Chairman Jerome Powell expressed caution about keeping interest rates higher for the longer term. , continues to favor interest rate-sensitive stocks over large tech stocks.
In Asia, investors weighed the latest trade data from Japan.
Japan’s exports increased by 5.4% year-on-year in June, down sharply from 13.5% in May. Imports increased by 3.2% year-on-year last month, down from 9.5% in May. Exports and imports were below Reuters’ expectations of 6.4% and 9.3% respectively.
Japan’s trade balance reversed from a deficit of 1.2 trillion yen (or US$7.7 billion) in May to a surplus of 224 billion yen.
Japan’s Nikkei 225 fell more than 2%, and the Topix fell 1.13%.
South Korea’s Kospi fell 1.27% and the small-cap Kosdaq fell 1.48%.
Australia’s benchmark index fell slightly as investors awaited employment data due later in the day.
Hong Kong’s Hang Seng Index The futures index was at 17,685 points, lower than the Hang Seng Index’s last closing point of 17,739.41 points.
Overnight, the US Dow Jones Industrial Average rose 243.60 points, or 0.59%, to close at 41,198.08 points. This is the first time the index has closed above 41,000 points. The S&P 500 index fell 1.39% overall, with the information technology and communication services industries performing the worst.
—CNBC’s Alex Harring and Pia Singh contributed to this report.
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