Asian Stock Market Mostly Declined As Big Tech Stock Slump Halts Wall Street Rally

In today’s trading, Asian markets fell alongside Wall Street after the White House announced plans to target companies supplying China with key semiconductor technology. Donald Trump commented regarding crucial chip supplier Taiwan.

The dollar stayed subdued after its recent decline, driven by rising expectations that the Federal Reserve will cut interest rates at least once this year.

Chip companies were in the spotlight after a Bloomberg News report indicated that President Joe Biden is considering the strictest trade restrictions available on firms like the Netherlands’ ASML and Japan’s Tokyo Electron to continue exporting advanced semiconductor technology to China.

The US government has restricted Chinese access to advanced chips and the equipment needed to produce them, citing security concerns, and has urged its allies to do the same. 

Tech-related shares dragged down Tokyo trading. Tokyo Electron’s shares plummeted by 9.4% while chip equipment maker Advantest’s shares dropped 4.6%. Lasertec Corp. declined 6.2%

The strengthening yen added to concerns about exporter shares in Japan, as a weaker yen benefits the nation’s major exporters like Toyota Motor Corp.

Elsewhere in Asia, Hong Kong’s Hang Seng index rose 0.2% to 17,778.41, and the Shanghai Composite index climbed 0.5% to 2,977.13.

Investors eagerly anticipate announcements on policies to stimulate China’s slowing economy as a top-level meeting of the ruling Communist Party concludes in Beijing on Thursday. 

Australia’s S&P/ASX 200 dropped 0.3% to 8,036.50, while South Korea’s Kospi decreased by 0.7% to 2,824.35.

Taiwan’s Taiex fell 1.6% with major chip maker TSMC declining 2.4% after an 8% drop in US trading overnight.

ABOUT THE AUTHOR See More

Sophia Cruz

Financial Writer - Asian & European Desks

Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.

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