Asian shares mostly higher after tech stocks continue decline on Wall Street

Markets in Asia were mostly higher in Tuesday trade after tech stocks extended their losses stateside.

In Japan, the Nikkei 225 dipped 0.07 percent while South Korea’s benchmark Kospi index rose 0.5 percent.

Down Under, the S&P/ASX 200 surged 1.17 percent after markets re-opened following a public holiday. Markets were driven by broad-based strength, with the financials sub-index leading gains and trading higher by 1.88 percent.

Hong Kong’s Hang Seng Index gained 0.52 percent. Markets on the mainland also traded higher, with the Shanghai Composite adding 0.36 percent and the Shenzhen Composite jumping 1.095 percent.

Moving forward, the two-day Federal Open Market Committee (FOMC) meeting is likely to be closely watched as investors await the Federal Reserve’s decision on an interest rate hike. The decision is due Wednesday U.S. time. Despite the extended fall in big tech names in the U.S. yesterday, after dropping almost 3 percent last Friday, tech plays in Asia painted more of a mixed picture.

“I don’t sit in the camp that we will see a prolonged pullback in U.S. tech, but there is a good chance this hot sector now under performs,” said Chief Market Strategist Chris Weston in a morning note.

South Korean tech stocks were higher after the sell-off in the last session. LG Display surged 6.59 percent and memory chip supplier SK Hynix traded jumped 1.39 percent. Samsung Electronics reversed earlier losses to climb 0.09 percent.

Tech stocks in Japan were mixed, with most companies trading lower. Sharp was down by 2.31 percent and Yahoo Japan tumbled 2.05 percent, but Fujitsu added 1.77 percent.

Shares of South Korea’s Hyundai gained 2.15 percent following news the automaker would be exporting its Kona SUV model to Europe and the U.S. later this year. The electric SUV will be able to cover 390 kilometers per charge, according to Reuters.

Several employees of Crown Resorts, the Australian gaming group, were charged in China for the “promotion of gambling,” Reuters reported. Shares of Crown traded lower by 0.19 percent.

Meanwhile, Australian media company Ten Network requested that its shares be halted from trade after the company’s guarantors said they did not intend to “extend … support for (Ten Network’s) credit facilities” after the term ended on Dec. 23, 2017.

In energy news, oil prices edged higher. Brent crude futures rose 0.46 percent to trade at $48.51 a barrel and U.S. crude was higher by 0.41 percent to trade at $46.27.

The dollar index, which measures the dollar against a basket of rival currencies, was firmer at 97.236, compared to the 97.1 handle seen in the last session. Dollar/yen traded at 109.98 at 12:15 p.m. HK/SIN after trading above the 110 handle earlier in the session.

Pound sterling was weaker due to political uncertainty, trading at $1.2651 compared to levels around the $1.27 handle seen following the U.K. election. Against the euro, the pound traded at $1.1303 — close to its lowest level since November last year.

In economic news, National Australia Bank’s business confidence survey results for the month of May showed that business conditions were upbeat in the country, Reuters reported. “The strength looks to be quite broad-based, with all industries recording positive business conditions for only the second time since 2010,” NAB Chief Economist Alan Oster said.

China foreign direct investment numbers for May are expected at 3:00 p.m. HK/SIN.

Stocks on Wall Street closed lower, with the extended fall in tech stocks weighing on the broader market.

Source: CNBC

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