Nasdaq Composite diving deeply, investors are red eyeing Asian technology stocks

Nasdaq Composite diving deeply, investors are red eyeing Asian technology stocks

Asian-Pacific investors faltered on the March 5 trading day when US Treasury bond yields continued to rise while the Nasdaq Composite Index lost all achievements since the beginning of the year.

China’s Shanghai Composite Index slid slightly to 3,501.99 points on March 5 trading. Photo: AFP

Mainland Chinese stocks closed in opposing colors. The Shanghai Composite and Shenzhen Component Index slid slightly to 3,301.99 points and 14,412.31 points, respectively, while the Shenzhen Composite went upstream and rose 0.171% to 2,298.60 points. On the same day, Chinese Prime Minister Li Keqiang announced the world’s second-largest economy set a growth target of over 6% in 2021.

On the Hong Kong market, the Hang Seng ended down 0.47% to 29,098.29 points.

The opposite color gamut also reappeared on the Japanese market with the Nikkei 225 falling 0.23% to 28,864.32 while the Topix index rose 0.61% to 1,896.18. On the Korean market, Kospi closed the trading day down 0.57% to 3,026.26 points.

Australian stocks also changed to the floor red with the S & P / ASX 200 index down 0.74% to 6,710.80 points. Overall, the MSCI Asia-Pacific (excluding Japan) fell 0.89%.

Investors were cautious after the head of the US Federal Reserve (Fed) on the economy of this country. Fed Chairman Jerome Powell said the re-activation of the economy could “cause some upward pressure on prices”. Mr Powell personally hopes the Fed will be “patient” in implementing policy actions, even if the economy is seeped into the effects of rising inflation.

Yields on US Treasury bonds have risen again after the comments of the Fed Chairman, although the upturn momentum has eased according to the afternoon trading hours of Asia. Specifically, the yield on 10-year US Treasury bonds reached 1,5365% after increasing to 1,583%.

In Asia-Pacific, bond yields tended to decrease. Australia’s 10-year government bond yield dropped to 1,806%, while Japanese 10-year government bond yield slipped to 0.082%.

Investors today watched red-eyed movements of Asian technology stocks after the US tech-oriented Nasdaq Composite index wiped out its achievements since the beginning of the year.

The red color covered most of Asian technology stocks on March 5 trading day. Shares of Chinese technology companies listed in Hong Kong all went down, Tencent shares fell 1.59%, Xiaomi lost 3.74%, and Meituan slipped 0.88%.

Shares of SoftBank Corporation (Japan) today did not increase significantly, while shares of the world’s second largest chip maker SK Hynix (South Korea) fell 1.41%.

The results from the beginning of the year until now of the Nasdaq Composite last night lost all when they fell 2.11% to 12,723.47 points, lower than the mark of 13,072.43 when closing the first session of the year 6/1.

The remaining two major indexes of US stocks also closed in the red last night. The S&P 500 index ended trading down more than 1.34% to 3,768.47 points, while the Dow Jones industrial average “evaporated” 345.95 points and closed at 30,924.14 points.

Oil prices traded in Asia this afternoon went up. Futures price Brent crude rose 1.41% and traded 67.68 USD / barrel, while the US crude futures price rose 1.19% to 64.59 USD / barrel.

On the money market, the US dollar index against other major currencies rose to 91,851, from below 91 recorded earlier this week. The Japanese Yen weakened to 108.36 JPY for USD, from below 107.4 JPY / USD yesterday, while the Australian dollar also depreciated and converted 1 AUD / 0.7681 USD, compared to the level 1 AUD “eat” 0.783 USD is usually seen during the week.