Tech Sector woes

Tech giants including Samsung and Tencent sank in Asian trade on Tuesday, tracking a sell-off in their US rivals and dragging most regional markets lower.

While investors welcomed news that the US Senate had finally passed controversial tax reforms, the deal must still be reconciled with a House bill, while the probe into alleged Russian meddling in last year’s election continues to dog Donald Trump.

The Dow closed at a record high on Wall Street but the Nasdaq tumbled more than one percent as dealers shifted out of the tech sector, which has enjoyed a healthy rally through the year, and into financial firms.

“Renewed weakness in the tech sector weighed at the bell” in New York, said Stephen Innes, head of Asia-Pacific trading at OANDA.

“However, it’s not as if the tech sector is under stress but rather some equities rotation remain in vogue as investors seek out opportunities in more tax reform sensitive stocks.”

Samsung fell 0.4 percent, while Tencent sank 1.3 percent and Sharp lost 1.6 percent.

On broader markets Tokyo ended the morning session 0.4 percent lower, Hong Kong eased 0.2 percent, while Sydney and Shanghai each dipped 0.1 percent

Wellington, Taipei and Kuala Lumpur were also lower but Seoul, Singapore and Manila edged up.

Yahoo via AFP News

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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