TOKYO, StockInsight.kedannews.co.id – Asian stock markets opened lower on Wednesday, following a sharp sell-off in U.S. equities. Indices in Hong Kong, South Korea, and Australia all fell, while Chinese companies listed in the U.S. lost up to 2%.
The decline mirrors a 0.5% drop in the S&P 500, with the Nasdaq 100 experiencing its worst two-day slump since October. The index broke below its 100-day moving average, a technical level considered by some analysts as a sign of further potential weakness.
Software companies faced another round of sell-offs, but the largest moves came from chip manufacturers. Alphabet Inc. dropped more than 7.5% in after-hours trading before recovering after reporting higher-than-expected expenditures. The heavy day ended negatively for the “Magnificent Seven” stocks, which collectively fell 1.8%.
“There are two perspectives: the glass half-full and the glass half-empty. Tech stocks may be overvalued, yet market strength is broadening,” said Kyle Rodda, a market analyst at Capital.com. His remarks reflect investor concerns over high valuations, rising expenses, and AI potentially disrupting established software business models.
In digital assets, Bitcoin hovered around US$73,000, with traders speculating it could fall below US$65,000. U.S. government bonds showed mixed movements, with short-term bonds gaining. The two-year yield fell by two basis points, while the 10-year yield edged higher. The U.S. dollar strengthened 0.3%.
The momentum behind tech stock sell-offs became increasingly apparent. The iShares MSCI USA Momentum Factor ETF dropped 3.7%, while Goldman Sachs’ high-risk momentum portfolios fell nearly 10%.
“Software stock news worsens daily, yet in the medium to long term, they remain poised for a strong rebound. Investors should exercise caution in the short term,” said Matt Maley, analyst at Miller Tabak.
In Asia, markets are watching upcoming inflation data from the Philippines, Thailand, and Taiwan, retail sales in Singapore, and Indonesia’s GDP figures. In Japan, attention focuses on the 30-year bond auction. The yen weakened 0.7% to around 157 per dollar, while the pound and euro also declined ahead of interest rate announcements from the European Central Bank (ECB) and the Bank of England, expected to hold rates steady.
Meanwhile, in the U.S., the service sector recorded its strongest consecutive growth since 2024 despite limited job additions. U.S. President Donald Trump and Chinese President Xi Jinping discussed trade issues and geopolitical tensions, including Taiwan, via a phone call ahead of an end-of-year in-person meeting.
In commodities, oil prices rose amid conflicting reports on U.S.-Iran nuclear talks, creating uncertainty over potential military action. Gold remained below US$5,000 per troy ounce.
Key Market Movements:
- Stocks: Hang Seng down 1.2%; S&P/ASX 200 down 0.2%
- Currencies: Bloomberg Dollar Spot Index up 0.3%; Euro US$1.1805; Yen 156.81 per dollar; Offshore Yuan 6.9408 per dollar; Australian Dollar US$0.6996
- Crypto: Bitcoin US$71,977.35; Ether US$2,098.84
- Bonds: 10-year Australian bond yield down two basis points to 4.85%
- Commodities: Spot gold US$4,964.93 per troy ounce, up 0.4%
Global investors are preparing for the latest economic data in Asia and monitoring bond movements, while scrutiny of technology stocks remains high. Tracking currency, commodities, and crypto performance is expected to guide short- to medium-term trading strategies.
Source: bloom bergtechnoz
