Asia tech sector among worst hit in global equities sell-off

Asia tech sector among worst hit in global equities sell-off

11/10/18

Indira Zahra-Aridati, Business and Policy Intern

Stock markets around the world slumped to their lowest levels in eight months following a global equities sell-off that began on Wall Street on Wednesday, with Asian tech markets among the worst affected.

CNBC reports that the Dow Jones lost 831 points, its worst day since February, amid ongoing concerns about the impact of the US-China trade dispute on global growth and the recent jump in the US Federal Reserve’s long-term interest rates.

The Financial Times reports that the S&P fell 3.3 per cent, while the Nasdaq Composite slumped more than 4 per cent. The steep sell-off roiled markets throughout Europe and Asia as all major indices reported major losses. The Europe-wide Stoxx 600 fell 2 per cent to its lowest level since February 2017.

Business Insider reports that Japan’s Nikkei 225 dropped 4 per cent, the FTSE TWSE Taiwan 50 Index plunged 6.2 per cent, and Hong Kong’s Hang Seng Index was down 3.3 per cent.

The tech sector was particularly hard-hit, with those in Asia among the worst affected. The Guardian reported the lowest levels of China’s stock market in four years, with shares in technology on the CSI 300 down 6.3 per cent, reducing more than a fifth of its value this year.

At the International Monetary Fund’s annual meeting in Bali, Managing Director Christine Lagarde insisted the Federal Reserve’s move to raise interest rates was “legitimate and necessary”, the Financial Times reports. Her comments come as US President Donald Trump assailed the Federal Reserve as “crazy” for raising interest rates.