Asian shares drop amid technology sell-off

Asian shares and global stock futures dropped on Wednesday, led by a decline in technology stocks. Investor concerns about global growth led to a shift away from risky assets, while oil prices hit multi-month lows.

Tokyo and Taipei stock benchmarks were down more than three per cent, and MSCI’s broadest index of Asia-Pacific shares outside Japan was 1.8 per cent lower.

September has a history of poor stock performance, with analysts attributing the recent downturn to various factors, including weak US manufacturing data.

Jason Teh, Chief Investment Officer at Vertium Asset Management, noted that volatility is increasing, with concerns about economic slowdown following recent macroeconomic events in August.

Concerns over China’s sluggish economic outlook, the world’s largest oil importer, and worries about a global slowdown have further exacerbated the decline in oil prices due to expectations of weakening demand.

Brent crude futures hit a bottom at $73.14 a barrel on Wednesday, while US crude reached a trough of $69.72, both their lowest levels since December.

Elsewhere, stocks in Hong Kong followed the regional trend, with the Hang Seng Index down 1.2 per cent. China’s CSI300 blue-chip index lost 0.4 per cent, while Japan’s Nikkei traded 3.86 per cent lower.

In the currency market, the yen strengthened 0.2 per cent to 145.15 per dollar, while a rebound in the greenback pushed the euro further away from a 13-month high. The common currency traded at $1.1057.

The Australian dollar fell by 0.12 per cent to $0.67035 due to downward pressure from weak commodity prices and sluggish economic data in the previous quarter.

The Australian dollar fell0.12 per cent to $0.67035 due to downward pressure from weak commodity prices and sluggish economic data in the previous quarter.

In the commodities market, spot gold rose 0.11 per cent to $2,495.66 an ounce.

Attribution: Reuters

Subediting: M. S. Salama