Asian stock markets experienced significant losses on Wednesday, mirroring Wall Street’s steep drop. Nvidia, a key player in the semiconductor industry, saw its shares plunge 9.5%, leading to a global downturn in chip-related stocks.
Japan’s Nikkei 225 led the declines, falling 3.8% to 37,211.09, with Tokyo Electron sinking 7% in early trading. South Korea’s Kospi dropped 3.0% to 2,584.81, driven lower by a 3.1% fall in Samsung Electronics. Taiwan’s Taiex decreased by 4.0%, weighed down by a 4.7% decline in Taiwan Semiconductor Manufacturing Company.
Australia’s S&P/ASX 200 fell 2.1% to 7,933.40, despite a 1% GDP growth in Q2 2023 that slightly exceeded expectations. Hong Kong’s Hang Seng index lost 1.1% to 17,462.25, while the Shanghai Composite index edged down 0.5% to 2,789.39.
U.S. futures also indicated lower openings, influenced by falling oil prices as Libya’s conflict over oil revenue neared resolution, potentially boosting oil production. Benchmark U.S. crude fell to $69.89 a barrel, and Brent crude dropped to $73.33 a barrel. Concerns about China’s economic performance, coupled with weak data and a struggling real estate sector, further dampened future oil demand.
The S&P 500, which had recently approached an all-time high, fell 2.1% on Tuesday. The Dow Jones Industrial Average decreased by 626 points, or 1.5%, and the Nasdaq composite plunged 3.3%, led by Nvidia and other major tech stocks.
Treasury yields also dropped following a disappointing manufacturing report for August. The 10-year Treasury yield fell to 3.84%, down from 3.91% late Friday and 4.70% in late April.
Currency markets saw minimal change, with the U.S. dollar holding steady at 145.48 Japanese yen and the euro rising slightly to $1.1054.
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