ArrowArtboardCreated with Sketch.Title ChevronCrossEye IconIcon FacebookIcon LinkedinShapeCreated with Sketch.Icon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Nikkei Markets

Asian stocks slump after Wall Street rout spooks investors

Tech stocks major contributors to losses while Chinese carmakers slide

HONG KONG (Nikkei Markets) -- Asian stocks tumbled amid a global equity selloff on Thursday, weighed down by steep losses in technology companies across the region and lingering worries over capital outflows from emerging markets.

The Nikkei Asia300 Index fell 4.1% to 1,178.25. Technology heavyweights Tencent Holdings, Samsung Electronics, and Taiwan Semiconductor Manufacturing Co. (TSMC) slid 6.8%, 4.9%, and 6.8%, respectively. The three companies made up more than 20% of the gauge as of Dec. 31. Tata Consultancy Services, India's largest software exporter, declined 3.1% ahead of its September quarter earnings. Its rivals Infosys and Wipro slid 3.6% and 1.2%, respectively.

Global equities slumped on Thursday following a technology-led selloff in the U.S. that saw the Nasdaq Composite suffer its worst loss in more than two years. Risk assets have been under pressure in recent sessions as rising interest rates in the U.S. threaten to pull cash away from equities, especially from the emerging markets.

"Equity investors are surprised by the pace at which rates have risen and that has led multiples to come under pressure and volatility to rise," Marcella Chow, a global market strategist at J.P. Morgan Asset Management, wrote in a note.

The Nikkei Asia300 has shed more than 10% in an eight-day losing streak amid Sino-American trade tensions and as the yield on 10-year U.S. Treasury notes has soared to seven-year highs. Portfolio outflows from emerging market equities have amounted to about $6.6 billion since Oct. 3, the Institute of International Finance said in a report on Thursday, with the bulk of the sales coming from China, Taiwan, South Korea, and India.

News that U.S. authorities will subject foreign investment in 27 industries, including semiconductors and telecommunications, to a stricter review process starting Nov. 10 also weighed on sentiment.

Suppliers to Apple in the region slid after the iPhone maker slumped 4.6% in New York on Wednesday. Hon Hai Precision Industry declined 6.9% in Taipei despite reporting a 29.7% jump in September sales. Camera lens-maker Largan Precision fell 9.9%, while Pegatron dropped 9.7%.

China's Great Wall Motor slid 6.4% in Hong Kong after reporting a 15% decline in September sales volume to 86,723 units, while Dongfeng Motor Group fell 5.7% following a 14.6% decrease in September sales to 271,134 units.

Electric carmaker BYD dropped 4.9% after reporting September sales of 47,913 units.

-- Amy Lam

You have {{numberReadArticles}} FREE ARTICLE{{numberReadArticles-plural}} left this month

Subscribe to get unlimited access to all articles.

Get unlimited access
NAR site on phone, device, tablet

{{sentenceStarter}} {{numberReadArticles}} free article{{numberReadArticles-plural}} this month

Stay ahead with our exclusives on Asia; the most dynamic market in the world.

Benefit from in-depth journalism from trusted experts within Asia itself.

Try 3 months for $9

Offer ends September 30th

Your trial period has expired

You need a subscription to...

See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

See all offers
NAR on print phone, device, and tablet media