Asian markets continue to sink, led by tumbling tech stocks


Asian stock markets dropped in early Friday trading, as a global selloff looks set to continue into the end of the week, led by sinking tech stocks.

Japan’s Nikkei

NIK, -0.80%

  fell 0.7% following an overnight rebound in the yen

USDJPY, -0.01%

 . As tech stocks sagged in the U.S., chip-equipment maker Tokyo Electron

8035, -2.63%

  dropped 3% and was at one-year lows. Electronics, consumer goods and energy stocks led the declines. Financials were higher, though, as U.S. bond yields continued to rise, causing equity-investor concerns but being seen as good for lenders and heavy bond investors. Life insurer T&D

8795, +1.47%

  was up a further 2% while bank Resona

8308, +2.08%

 rose about the same. Meanwhile, electronics maker TDK

6762, -4.79%

  and cosmetics firm Shiseido

4911, -3.47%

  were down more than 3%.

Hong Kong stocks continued to drop after Thursday’s skid left the Hang Seng Index below the Dow industrials on a closing basis for the first time since April 2013. The benchmark

HSI, -0.15%

  was down 0.8%, with Tencent

0700, -0.78%

  down 1.6% and at fresh year-plus lows. Insurer AIA

1299, -0.23%

  was off another 1.7%, putting the week’s swoon at about 10%. But HSBC

0005, +0.88%

  was up almost 1%. A number of Apple Inc. suppliers, such as AAC Technologies

2018, -3.12%

  and Sunny Optical

2382, -2.80%

 , saw their shares sink following a Bloomberg News report that China may have secretly planted spy chips in some servers used by Apple

AAPL, -1.76%

  and Inc

AMZN, -2.22%

 . Both American tech giants strongly denied the report.

Apple suppliers Foxconn

2354, -1.50%

 and Taiwan Semiconductor

2330, -1.57%

 fell as well, weighing down Taiwan’s Taiex

Y9999, -1.88%


South Korea’s Kospi

SEU, -0.31%

  slipped nearly 1%, as Samsung

005930, +0.00%

  shed early gains to drop into the red despite forecasting record operating profit in the third quarter.

Australia was again the lone gainer in the region, as the ASX 200

XJO, +0.15%

  rose slightly. Benchmarks in New Zealand

NZ50GR, -0.46%

 and Singapore

STI, -0.67%

  fell, while Malaysia

FBMKLCI, -0.62%

  was about flat. Markets in mainland China remained closed for a weeklong holiday.

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