SINGAPORE — Most Asia-Pacific markets mostly fell on Tuesday after heavy losses overnight on Wall Street that saw the tech-heavy Nasdaq Composite dropping more than 4%.
Returning to trade after a holiday on Monday, Hong Kong’s Hang Seng index fell 2.83% by Tuesday afternoon.
Technology shares elsewhere in Asia-Pacific also declined in Tuesday trade, largely mirroring losses after the Nasdaq Composite dropped 4.29% overnight to 11,623.25.
Shares of Japanese conglomerate SoftBank Group fell 2.73%. South Korea’s Kakao lost 0.36% while Krafton dropped 2.19%.
“I think the broader picture is going to remain one of higher bond yields and tighter monetary policy which ultimately will work against tech stocks,” Shane Oliver, head of investment strategy and chief economist at AMP Capital, told CNBC’s “Street Signs Asia” on Tuesday.
“Beyond any short-term bounce from oversold, I’m not overly confident [on the tech sector],” Oliver said. “I’d tend to favor cyclicals, resources stocks, industrials.”
In the broader markets, the Nikkei 225 in Japan fell 0.91% while the Topix index slipped 0.98%.
MSCI’s broadest index of Asia-Pacific shares outside Japan traded 1.21% lower.
Other major indexes on Wall Street also saw substantial losses overnight, with the S&P 500 slipping 3.2% to 3,991.24 — falling below the 4,000 level for the first time in more than a year. The Dow Jones Industrial Average shed 653.67 points, or 1.99%, to 32,245.70.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 103.576 — off levels above 103.8 seen recently.
The Japanese yen traded at 130.27 per dollar, stronger than levels above 130.5 seen against the greenback yesterday. The Australian dollar was at $0.6967, struggling to recover after last week’s drop from above $0.72.
Oil prices were lower in the afternoon of Asia trading hours, with international benchmark Brent crude futures slipping 1.28% to $104.58 per barrel. U.S. crude futures shed 1.28% to $101.77 per barrel.