Asian markets react to U.S. tech stocks declines
Date
1/28/2025 4:20:54 AM
(MENAFN) Asian stock markets showed mixed results on Tuesday during the low-volume Lunar New Year trading. This followed a steep decline in tech Stocks on Wall Street, which were impacted by concerns from a Chinese competitor over the recent surge in artificial intelligence (AI) market enthusiasm. Japan's NIKKEI 225 saw a significant drop of 1.5%, closing at 38,959.05. Meanwhile, Australia's S&P/ASX 200 experienced only a slight decrease of 0.1%, ending at 8,399.10. Hong Kong's Hang Seng index rose slightly by 0.1%, reaching 20,225.11. Other markets in South Korea and Shanghai were closed for the holiday.
In Japan's technology sector, stocks faced heavy losses, with SoftBank Group Corp. seeing a 6% drop, and Hitachi Ltd. losing 7%. On the other hand, Fujitsu and Sony Corp. showed signs of recovery. Tokyo Electron, a computer chip maker, also fell by 5.5%. Meanwhile, Fuji Media Holdings, dealing with a sex scandal, saw a 1% rise after its executives held a lengthy press conference to address the controversy, which led to the resignation of two top officials.
U.S. markets experienced significant losses on Monday, with the S&P 500 falling 1.5%, heavily affected by a 16.9% plunge in Nvidia's stock. Other major tech companies also saw considerable declines, pushing the Nasdaq composite down by 3.1%, marking its worst drop in over a month. This downturn was largely concentrated in AI-related stocks, while other sectors of the market fared better.
Despite the tech sector's struggles, the Dow Jones Industrial Average gained 0.7%, reaching 44,713.58, and most U.S. stocks saw positive movement. However, those holding S&P 500 index funds, commonly found in 401(k) accounts, felt the brunt of the tech sector's poor performance due to the large influence of tech giants on these indexes.
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