Japanese stocks tumble, selloff in tech extends: Markets wrap
Japanese stocks plunged for a second day as expectations rose on more rate hikes by the nation’s central bank. Asian equities also declined, tracking losses on Wall Street as data signaled a softening US economy.
The broad Topix benchmark index in Japan fell more than 4%, as the yen gained for a fourth day to pressure markets. The selloff in tech-related stocks continued in Asia with AI chipmaker SK Hynix Inc. tumbling more than 6%.
Contracts for the S&P 500 index and Nasdaq 100 index also fell Friday, compounding Thursday declines for the underlying benchmarks, as a handful of post-market corporate reports underwhelmed. Intel Corp. said third-quarter revenue will disappoint while Amazon.com Inc projected profits that missed analysts’ estimates, sending each companies shares lower in after-hours trading.
Pressure on equities partly echoed signs of strain in the US economy and the likely timing of Federal Reserve interest rate cuts. Thursday data showed unemployment claims hit an almost one-year high while manufacturing shrank. Jobs data due later Friday will provide further clarity and is expected to indicate a slowing in new roles added to the economy.
The unease prompted swaps traders to increase the number of anticipated Fed cuts this year to three from two. Treasuries advanced again on Thursday, with the 10-year yield falling below 4% for the first time since February.
“Markets are approaching panic mode as many economic factors converge, supporting a drift away from risk assets,” said Jose Torres at
