Asia Tech Stocks Slide after the Wall Street Rout
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Japanese markets have expanded their slides on Tuesday when technology stocks sold out heavy on Monday, which was partly promoted by the overnight decline in chip manufacturer’s stock.
NVIDIA lost $ 589 billion in market value on Monday in a historic autumn, when Wall Street and Silicon Valley panic Because of a cognitive threat from Chinese startup Deepseek to the continuous dominance of the United States in AI and the need to invest hundreds of billion dollars in basic infrastructure.
Nikkei 225 heavy technology of Japanese technology dropped by 1.7 % on Tuesday morning in Tokyo, before recovery decreased by 1.4 %. Topix is wider, with lower weight for Japanese technology exporters, is flat.
The US dollar was strengthened by 0.6 percent of a monetary basket including the Japanese Yen and Pound Sterling after the news that US Finance Minister Scott Bessent was promoting the implementation.New Global TariffsStarting from 2.5 percent for US imports.
Future transactions show that NASDAQ will open 0.2 %, after a 3 % drop yesterday. S&P 500 is set to open flat.
In Hong Kong, stocks in Chinese technology companies have recorded profits on Tuesday, although Chipmaker Smic has closed 0.4 % after a drop by up to 2 %.
The stock was listed in Tokyo in the SoftBank Group, which was heavily affected, decreased by more than 5.2 % in early transactions and extended their autumn this week to about 12 %.
Analysts say SoftBank is particularly affected by 10 % of ARM Holdings-Chip Design Company listed in the United States, of which the Japanese group holds 88 % of the shares.
Even after this week’s accident, SoftBank shares are 43 % higher than August, Kirk Boodry, an analyst that includes the company at Astris Advisory in Tokyo, paying attention to the high volatility of the stock.
Now, it looks terrible, but maybe it’s normal for Softbank, he said. This is one of its other round trips, where you have a big push then it falls to Earth. Boodry continues to judge the company as a buyer.
Last week, the founder of Masayoshi Son, accompanied by US President Donald Trump when announcing the Stargate joint venture, related to SoftBank, Oracle and Openai in the investment center of the $ 100 billion data center they said they had yes. The body extends to $ 500 billion for four years.
Deepseek’s promise of a much lower cost model has asked the question of whether the son’s image notice marks the peak of AI Capex Boom, Jefferies’s strategist, Chris Wood.
The sale in Tokyo has focused on Disco, Advantest and Furukawa-Furukawa-stocks that have skyrocketed in recent months of expanding the demand for chips and high-end data centers for artificial intelligence. .
Disco and Furukawa stocks have dropped by 3.2 % and 8 % respectively on Tuesday. NVIDIA providers have a decrease in more than 10 % in the first 20 minutes of transactions.
The expansion of the sale is expanded to include companies like Mitsubishi Heavy Industries, Hitachi and Kawasaki Heavy Industries. Until recently, they have traded higher with the bet that they will benefit from overall investment higher in AI -linked electricity infrastructure.
If you are in technology hardware, you have been hindered yesterday, Prashant Bhavani, investment director at BNP Paribas Wealth Management.
The movement to other areas of the market will continue – that will also wake people up to diversify the portfolio, this is not necessary in the past two years, where you have to own. [the Magnificent] Seven [Big Tech] Share.
Kong’s Hang Hang Seng Benchmark closed 0.2 % on Tuesday, led by mainland Chinese technology companies including Tencent, Alibaba and Baidu.
South Korea and Taiwan closed for the New Year holiday.
