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Nov. 9, 2017, 10:44 p.m. EST

Asian markets pull back following Wall Street’s losses

Chip makers take a hit in Japan, South Korea

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By Kenan Machado


Getty Images/iStockphoto
Stocks in Tokyo were also hit by further gains in the yen Friday.

Global equities remained under selling pressure on Friday with Japan’s benchmark index leading declines in Asia, tracking overnight weakness on Wall Street on concerns over the U.S. tax-overhaul plan.

Key U.S. stock indexes slid as the U.S. Senate’s plan to push through a different tax proposal than what the House of Representatives released last week caused some investors to question the Republicans’ ability to get a bill through to the White House.

The Nikkei Stock Average /zigman2/quotes/210597971/delayed JP:NIK -0.79%   was down 1.4%, adding to Thursday’s declines, following the market’s recent strong run that saw the index close at a 25-year high on Wednesday. Stocks in Tokyo were also hit by further gains in the yen, with the U.S. dollar trading at around ¥113.31, compared with ¥113.59 at Thursday’s stock-market close.

“Investors are slowly unwinding their expectations from the Trump tax bill,” said Margaret Yang, market analyst at CMC Markets. Given the significant run-up in global shares over the past few weeks, traders took cues to take profit, she said.

Chip-maker stocks led Friday’s declines in Tokyo, extending weakness from the previous session, after technology giant Qualcomm /zigman2/quotes/206679220/composite QCOM -3.72%   signed significant, but preliminary deals with three Chinese companies to supply components.

The tie-ups fueled fears that other companies in the region that rely on Qualcomm’s patents to develop and make chips would be at a disadvantage.

Shares of Renesas Electronics /zigman2/quotes/203872935/delayed JP:6723 -0.82%   and Rohm   were down about 1% after opening down around 2.5% each. In Korea, the Kospi index /zigman2/quotes/210598069/delayed KR:180721 -1.28%   was down 0.4%, with Samsung Electronics /zigman2/quotes/209800866/delayed KR:005930 -2.42%   dropping as much as 1% and chip maker SK Hynix /zigman2/quotes/206420319/delayed KR:000660 -3.47%   losing as much as 1.7%.

Elsewhere, Shanghai’s benchmark index /zigman2/quotes/210598127/delayed CN:SHCOMP -0.83%   was off 0.3%, while Taiwan’s Taiex   also lost 0.3%.

However, Hong Kong shares reversed early losses, and the Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI -0.73%   was last trading up 0.1%, led by a 3.7% jump in Apple supplier AAC Tech /zigman2/quotes/201441510/delayed HK:2018 -2.81%  , which plans to release January-September earnings later Friday. Analysts expect the company to present another set of robust results. Also, blue-chip insurer Ping An /zigman2/quotes/210315058/delayed HK:2318 -0.56%   rose 1.3% to a fresh intraday record.

Meanwhile, Australia’s benchmark index /zigman2/quotes/210598100/delayed AU:XJO -2.31%  was down 0.4%, with BHP Billiton /zigman2/quotes/201448516/delayed AU:BHP -2.15%   and Rio Tinto /zigman2/quotes/200083756/delayed AU:RIO -1.83%   both falling 2.3%, likely on profit-taking following their double-digit gains so far this year.

The S&P/ASX 200 reached its highest level since 2008 this week after rising 4% in October, its best month this year. It had lagged behind the region throughout 2017.

“The rally [in Australia] doesn’t have substance behind it,” with momentum from international markets carrying it higher, said Shane Chanel, an equities adviser at ASR Wealth Advisers.

Overnight in the U.S., the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -3.15%   shed 0.4% and the Nasdaq Composite /zigman2/quotes/210598365/realtime COMP -2.77%   fell 0.6%. Technology stocks in the S&P 500 /zigman2/quotes/210599714/realtime SPX -3.03%  , the best-performing sector of the year so far, fell 0.9% on Thursday.

In commodities, oil futures were weaker in Asian trade following a modest rebound overnight. Futures contracts for Brent   and Nymex   were trading down around 0.2%.

Also, energy stocks in the region faced selling pressure, with Santos /zigman2/quotes/207349564/delayed AU:STO -3.23%   and Oil Search /zigman2/quotes/204702973/delayed AU:OSH -2.66%   in Australia down 3.3% and 1.1%, respectively. Japan Petroleum /zigman2/quotes/201212147/delayed JP:1662 -1.69%   off 1.1% in Tokyo.

/zigman2/quotes/210597971/delayed
JP : Nikkei
22,426.19
-179.22 -0.79%
Volume: 0.00
Feb. 26, 2020 3:15p
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/zigman2/quotes/206679220/composite
US : U.S.: Nasdaq
$ 80.22
-3.10 -3.72%
Volume: 14.72M
Feb. 25, 2020 4:00p
P/E Ratio
22.82
Dividend Yield
3.09%
Market Cap
$91.69 billion
Rev. per Employee
$607,486
loading...
/zigman2/quotes/203872935/delayed
JP : Japan: Tokyo
¥ 730.00
-6.00 -0.82%
Volume: 8.04M
Feb. 26, 2020 3:00p
P/E Ratio
572.01
Dividend Yield
N/A
Market Cap
¥1258.78 billion
Rev. per Employee
¥36.92M
loading...
/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,076.77
-26.84 -1.28%
Volume: 810,937
Feb. 26, 2020 3:32p
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/zigman2/quotes/209800866/delayed
KR : S. Korea: KRX
56,500.00
-1,400 -2.42%
Volume: 25.48M
Feb. 26, 2020 3:30p
P/E Ratio
17.85
Dividend Yield
2.51%
Market Cap
₩393295.00 billion
Rev. per Employee
N/A
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/zigman2/quotes/206420319/delayed
KR : S. Korea: KRX
94,600.00
-3,400 -3.47%
Volume: 6.41M
Feb. 26, 2020 3:30p
P/E Ratio
31.98
Dividend Yield
1.06%
Market Cap
₩67032.10 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210598127/delayed
CN : China: Shanghai
2,987.93
-25.12 -0.83%
Volume: 46.90B
Feb. 26, 2020 3:01p
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/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
26,696.49
-196.74 -0.73%
Volume: 2.04M
Feb. 26, 2020 4:08p
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/zigman2/quotes/201441510/delayed
HK : Hong Kong
HK$ 55.40
-1.60 -2.81%
Volume: 14.14M
Feb. 26, 2020 4:08p
P/E Ratio
21.13
Dividend Yield
2.58%
Market Cap
HK$68.88 billion
Rev. per Employee
HK$411,637
loading...
/zigman2/quotes/210315058/delayed
HK : Hong Kong
HK$ 88.20
-0.50 -0.56%
Volume: 30.86M
Feb. 26, 2020 4:08p
P/E Ratio
9.44
Dividend Yield
2.58%
Market Cap
HK$1616.35 billion
Rev. per Employee
HK$3.35M
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/zigman2/quotes/210598100/delayed
AU : S&P ASX
6,708.10
-158.50 -2.31%
Volume: 1.01M
Feb. 26, 2020 5:38p
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/zigman2/quotes/201448516/delayed
AU : Australia: Sydney
$ 35.55
-0.78 -2.15%
Volume: 7.73M
Feb. 26, 2020 4:10p
P/E Ratio
13.30
Dividend Yield
6.10%
Market Cap
$183.71 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/200083756/delayed
AU : Australia: Sydney
$ 91.89
-1.71 -1.83%
Volume: 1.85M
Feb. 26, 2020 4:10p
P/E Ratio
8.37
Dividend Yield
9.76%
Market Cap
$152.04 billion
Rev. per Employee
$1.14M
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
27,081.36
-879.44 -3.15%
Volume: 513.27M
Feb. 25, 2020 4:59p
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/zigman2/quotes/210598365/realtime
US : U.S.: Nasdaq
8,965.61
-255.67 -2.77%
Volume: 3.07M
Feb. 25, 2020 5:16p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,128.21
-97.68 -3.03%
Volume: 3.13B
Feb. 25, 2020 4:59p
loading...
/zigman2/quotes/207349564/delayed
AU : Australia: Sydney
$ 7.19
-0.24 -3.23%
Volume: 7.88M
Feb. 26, 2020 4:10p
P/E Ratio
15.60
Dividend Yield
2.32%
Market Cap
$15.44 billion
Rev. per Employee
$2.29M
loading...
/zigman2/quotes/204702973/delayed
AU : Australia: Sydney
$ 5.85
-0.16 -2.66%
Volume: 10.24M
Feb. 26, 2020 4:10p
P/E Ratio
19.94
Dividend Yield
3.32%
Market Cap
$9.16 billion
Rev. per Employee
$1.46M
loading...
/zigman2/quotes/201212147/delayed
JP : Japan: Tokyo
¥ 2,561.00
-44.00 -1.69%
Volume: 255,000
Feb. 26, 2020 3:00p
P/E Ratio
7.35
Dividend Yield
1.95%
Market Cap
¥148.88 billion
Rev. per Employee
¥156.48M
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