The majority of Asian equities fell on Tuesday as declines in companies linked to technology pressured global indices. Taiwan shares fell 4% after resuming trading following a holiday since the United States put additional restrictions on semiconductor and chip-making equipment exports to China. The shares of TMSC, the world’s largest chipmaker, fell 7.8%.
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The Nikkei 225 in Japan fell 2.5% in early trade to 26,439.97. The Kospi in South Korea fell 2.2% to 2,184.87. The Hang Seng index in Hong Kong fell 1.4% to 16,984.41.
The Shanghai Composite rose 0.4% to 2,986.11, while the S&P/ASX 200 in Australia rose 0.1% to 6,671.90.
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On Tuesday, after more than two years of COVID-19 restrictions, Japan returned to unrestricted tourism. Travel spending that has been put on hold might help bolster the world’s third-largest economy as it deals with sluggish global growth and inflation.
However, the announcement of stricter export limits on semiconductors and chip manufacturing equipment has weighed on technology stocks. The restrictions are intended to hinder China’s capacity to get advanced computing chips, create and maintain supercomputers, and manufacture advanced semiconductors.
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Following sharp losses on Monday, technology shares in China were battered by further selling. Naura Technology, a manufacturer of chip equipment, fell 10%, while Hwatsing Technology lost 9.6%. Qualcomm Inc. fell 5.2% and Broadcom Inc. fell 5% on Wall Street. Applied Materials fell 4.1%, while Lam Research Corporation fell 6.4%.
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The S&P 500 index sank 0.7% to 3,612.39, extending its losing skid to the fourth day. The Dow Jones Industrial Average declined 0.3% to 29,202.88, while the Nasdaq Composite dropped 1% to 10,542.10. The Russell 2000 index dropped 0.6% to 1,691.92.
On the New York Mercantile Exchange, benchmark US crude slid 38 cents to $90.75 a barrel. Crude oil in the United States fell 1.6% on Monday. Brent crude fell 27 cents to $95.92 a barrel.
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The US dollar fell to 145.73 Japanese yen from 145.75 yen in currency trade. The euro was trading at 96.84 cents, down from 97.04 cents.