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June 27, 2017, 11:20 p.m. EDT

Asian stocks pull back on U.S. tech declines, eurozone worries

Tech stocks slide in Taiwan, South Korea

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By Ese Erheriene


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Taiwan’s market, which heavily skews toward tech, slid Wednesday.

Stock selling eased in the Asia-Pacific region Wednesday after overnight declines in the U.S. and Europe on worries the European Central Bank would reduce monetary stimulus.

ECB chief Mario Draghi hinted at a reduction of its ultra-easy policies as the continent’s economy has shown signs of acceleration this year.

“As the eurozone recovery continues to gather momentum, markets are gradually turning their view to the growing likelihood of a change in policy stance,” said Rob Carnell, an economist at ING.

The comments sent equities and the dollar lower, with the euro jumping the most versus the greenback in a year. Sovereign-debt yields also jumped.

But lower bond prices are good news for the likes of Japanese insurers, who are heavy buyers of such securities, and higher yields help pay for future claims. Dai-ichi Life /zigman2/quotes/208507587/delayed JP:8750 +0.08%   and T&D Holdings /zigman2/quotes/208425761/delayed JP:8795 +0.99%   each rose 2%.

Also amid a falling yen overnight, the Nikkei Stock Average /zigman2/quotes/210597971/delayed JP:NIK -0.43%   fell 0.1%, less than the declines seen overnight in other major global stock indexes.

Elsewhere, benchmarks in Korea /zigman2/quotes/210598069/delayed KR:180721 +1.33%   and New Zealand /zigman2/quotes/211587880/delayed NZ:NZ50GR +0.06%   also eased 0.1% after hitting record highs Tuesday.

Taiwan stocks lagged behind in the wake of fresh selling in U.S. technology companies. Taiwan’s market, which heavily skews toward tech, was hit by near-2% declines for the likes of Alphabet /zigman2/quotes/202490156/composite GOOGL +1.65%  , Microsoft /zigman2/quotes/207732364/composite MSFT +0.94%   and Amazon /zigman2/quotes/210331248/composite AMZN +0.52%  .

Meanwhile, global equities were also hit as Fed officials appeared coordinated in hinting that asset valuations look elevated, investment bank OCBC said, with selling pressure in tech stocks continuing to dominate the agenda.

Catcher Technology /zigman2/quotes/205181919/delayed TW:2474 +1.15%  , Wistron /zigman2/quotes/204871541/delayed TW:3231 +0.14%   and Taiwan Semiconductor /zigman2/quotes/207385621/delayed TW:2330 +1.40%   all fell slightly more than 1%, helping push Taiwan’s Taiex   down 0.7%. Elsewhere, the Kospi’s IT subindex slid 0.9%.

Elsewhere, oil prices are on the rebound in Asia after having initially shed half of Tuesday’s gains following the release of downbeat U.S. inventory estimates from an industry group. Benchmark U.S. oil futures fell back below $43.70 a barrel on the disclosure from the American Petroleum Institute but were recently at $44.07, down 0.4% from Tuesday’s settlement.

And while Asian sovereign-debt markets followed the overnight selling caused by Draghi’s comments, moves were more muted in Japan, where the central bank has an explicit target to keep 10-year yields around zero as part of its stimulative monetary policy.

In Australia, the 10-year yield rose to 2.44% from 2.371% late Tuesday, according to Thomson Reuters data, while Korea’s 10-year climbed to 2.148% from 2.119%.

/zigman2/quotes/208507587/delayed
JP : Japan: Tokyo
¥ 1,306.50
+1.00 +0.08%
Volume: 2.16M
Aug. 6, 2020 3:00p
P/E Ratio
47.24
Dividend Yield
4.75%
Market Cap
¥1474.40 billion
Rev. per Employee
¥103.65M
loading...
/zigman2/quotes/208425761/delayed
JP : Japan: Tokyo
¥ 922.00
+9.00 +0.99%
Volume: 2.84M
Aug. 6, 2020 3:00p
P/E Ratio
8.45
Dividend Yield
4.77%
Market Cap
¥548.43 billion
Rev. per Employee
¥153.74M
loading...
/zigman2/quotes/210597971/delayed
JP : Nikkei
22,418.15
-96.70 -0.43%
Volume: 0.00
Aug. 6, 2020 3:15p
loading...
/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,342.61
+30.75 +1.33%
Volume: 797,147
Aug. 6, 2020 3:32p
loading...
/zigman2/quotes/211587880/delayed
NZ : New Zealand: NZX
11,764.59
+6.87 +0.06%
Volume: 0.00
Aug. 6, 2020 5:00p
loading...
/zigman2/quotes/202490156/composite
US : U.S.: Nasdaq
$ 1,503.43
+24.34 +1.65%
Volume: 1.03M
Aug. 6, 2020 2:15p
P/E Ratio
33.52
Dividend Yield
N/A
Market Cap
$1004.55 billion
Rev. per Employee
$1.39M
loading...
/zigman2/quotes/207732364/composite
US : U.S.: Nasdaq
$ 214.94
+2.00 +0.94%
Volume: 18.50M
Aug. 6, 2020 2:16p
P/E Ratio
37.23
Dividend Yield
0.95%
Market Cap
$1611.46 billion
Rev. per Employee
$902,473
loading...
/zigman2/quotes/210331248/composite
US : U.S.: Nasdaq
$ 3,221.66
+16.63 +0.52%
Volume: 2.47M
Aug. 6, 2020 2:15p
P/E Ratio
123.76
Dividend Yield
N/A
Market Cap
$1605.37 billion
Rev. per Employee
$359,671
loading...
/zigman2/quotes/205181919/delayed
TW : Taiwan
NT$ 220.50
+2.50 +1.15%
Volume: 6.21M
Aug. 6, 2020 1:30p
P/E Ratio
12.65
Dividend Yield
4.54%
Market Cap
NT$167.95 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/204871541/delayed
TW : Taiwan
NT$ 34.95
+0.05 +0.14%
Volume: 16.42M
Aug. 6, 2020 1:30p
P/E Ratio
15.39
Dividend Yield
5.84%
Market Cap
NT$99.14 billion
Rev. per Employee
NT$10.72M
loading...
/zigman2/quotes/207385621/delayed
TW : Taiwan
NT$ 435.00
+6.00 +1.40%
Volume: 41.03M
Aug. 6, 2020 1:30p
P/E Ratio
24.80
Dividend Yield
2.30%
Market Cap
NT$11124.13 billion
Rev. per Employee
N/A
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