Tech share plunge drags Asian stocks lower
Asian shares fell on Thursday, weighed down by a plunge in high-flying technology shares, a move that some see as a healthy correction after a strong rally but others believe may herald the peak of a "super cycle" that has been boosting the sector.
MSCI`s broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> dropped 0.5 percent, with technology bellwether Samsung Electronics falling 2.9 percent to two-month lows.
Japan`s Nikkei <.n225> dipped 0.3 percent, led by falls in Sony , Murata manufacturing and other technology shares.
Asia tech shares came under pressure after U.S. hi-tech giants plummeted.
The Nasdaq Composite <.ixic> dropped 1.27 percent as investors shifted to financials and other sectors even as the S&P 500 <.spx> was almost flat and the Dow Jones Industrial Average <.dji> gained 0.44 percent.[.N]
Shares of Amazon.com
Possibly weighing on them were concerns, sparked by a Morgan Stanley report earlier this week, that demand for NAND flash memory, a key component in various high-tech products, may have peaked.
But some market players said a correction in high-tech shares was not a surprise given their strong rally this year. The Nasdaq index is still up 26.8 percent so far this year, more than 9 percentage points above gains in the S&P.
"A correction of this scale has happened many times in the past. Looking at the solid outlook of many high-tech companies and their decent valuations, I don`t think it`s time to worry," said Mutsumi Kagawa, chief global strategist at Rakuten Securities.
On the other hand, U.S. bond yields rose across the maturities and the dollar gained some traction after the U.S. third-quarter GDP growth was revised up to an annualised 3.3 percent
That was the fastest growth in three years, though economists noted that inventories, goods yet to be sold, accounted for nearly a quarter of GDP growth.
The U.S. Senate on Wednesday took a step toward passage of tax legislation that is a top White House priority, setting up a likely decisive vote later this week.
But it remained unclear if the bill has enough Republican support to become law.
The 10-year U.S. Treasuries yield rose to 2.388 percent
There was no immediate market response after U.S. President Donald Trump nominated Carnegie Mellon University professor Marvin Goodfriend, viewed as a policy hawk, to be a member of the Federal Reserve Board of Governors.
The dollar also firmed to 112.00 yen
The British pound
Sterling last traded at $1.3414.
U.S. crude futures
Oil prices dipped on Wednesday in a volatile session buffeted by conflicting statements from oil ministers a day ahead of OPEC`s meeting in Vienna, as members debate the path for an extension of the group`s supply-cut agreement.
While the Organization of Petroleum Exporting Countries and key non-member Russia look set to prolong oil supply cuts until the end of 2018, they have signalled that they may review the deal when they meet again in June if the market overheats.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.