Asian Markets Plunge: Nikkei and Taiex Drop as Tech Stocks Fall

Asian Markets Plunge: Nikkei and Taiex Drop as Tech Stocks Fall

Asian stock markets took a hit after Wall Street’s roughest day since August. Japan’s Nikkei 225 and Taiwan’s Taiex saw big drops as tech stocks struggled.

Asian Markets Plunge: Nikkei and Taiex Drop as Tech Stocks FallAsian Markets Plunge: Nikkei and Taiex Drop as Tech Stocks Fall

Nikkei 225 Hits Hard

Japan’s Nikkei 225 fell 4.24% to 37,047.61, its worst drop since August 5. The Topix index also fell 3.65% to 2,633.49. Tech stocks like Renesas Electronics and Tokyo Electron fell sharply by 8.50% and 8.55%. Softbank Group, which owns chip designer Arm, dropped 7.73%.

Taiwan’s Tech Woes

In Taiwan, the Taiwan Weighted Index dropped 4.52% to 21,092.75. Key tech firms like TSMC and Foxconn saw their stocks fall by 5.21% and 3.51%. The index initially fell by 5.29% before recovering slightly.

South Korea and Australia Decline

South Korea’s Kospi fell 3.15% to 2,580.8, and the Kosdaq dropped 3.76% to 731.75. In Australia, the S&P/ASX 200 decreased by 1.88% to 7,950.5, mainly due to lower oil prices. Australia’s GDP grew 1% year-on-year, which was in line with expectations but didn’t boost the market.

China’s Mixed Results

China’s markets dropped less than others. The Hang Seng Index fell 1.26%, and the CSI 300 dropped 0.63%, hitting a seven-month low. Chinese chip stocks weakened, with Semiconductor Manufacturing International Corporation and Hua Hong Semiconductor falling 2.08% and 3.23%. The Caixin services PMI showed slower growth in August.

Impact of US Market

Asia’s troubles follow a bad day on Wall Street. Weak economic data and a tech stock selloff led to the worst day since early August. Nvidia’s stock fell over 9%, and the VanEck Semiconductor ETF dropped 7.5%.

What’s Next?

Markets are watching for new economic data and central bank decisions. The August jobs report in the U.S. is expected to show a slight increase in jobs, with talk of possible Federal Reserve rate cuts.

Conclusion

The drop in Asian markets highlights how global financial systems are connected and how tech stocks react to economic changes. Investors are closely watching for signs of recovery or further decline.

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