Asian Stocks Slip, Tech Taking a Backseat
Asian stock markets opened lower following Wall Street's rout, as investors again shunned riskier assets. Stocks in Japan and Australia fell, followed by Hong Kong futures. Pressure came primarily from the technology sector, with the Nasdaq 100 falling 1.9% and Nvidia shares plummeting 3.8% to their lowest level since September, dampening global sentiment.
The massive sell-off in technology stocks reflected growing investor skepticism about the high valuations and heavy spending of companies involved in the artificial intelligence (AI) boom. Concerns over data center construction costs and the desire for growth made markets cautious. Money flowed to safe-haven assets, pushing up short-term government bonds and lifting gold and silver prices, while Bitcoin also suffered, though it recovered slightly.
Market volatility was also triggered by other global factors, ranging from geopolitical risks from Russia and Venezuela, which are supporting oil prices, to the anticipation of crucial US inflation data. In Asia, Japan edged higher ahead of a potential Bank of Japan interest rate hike, while China considered the issue of restructuring its massive property debt. As the year draws to a close, the market is expected to remain volatile as liquidity weakens and confidence in large tech stocks begins to be tested. (az)
Source: Newsmaker.id
