Yahoo Finance Asian Equities Rise; Tech Stocks Remain Under Pressure
Investing.com - Asian equities moved broadly higher at the opening Tuesday, although with some caution.
Hong Kong, China, Japan and Australia all were in the black at or shortly after opening despite some modest losses in the U.S. overnight, where both the Dow Jones Industrial Average and NASDAQ Composite gave up some ground and the S&P 500 gained just 0.01%. South Korean markets were the exception, quickly giving up modest early gains.
Putting pressure on Asian equities was a rally in the U.S. dollar, which hit a three-month high as yields on 10-Year U.S. Treasuries reached 2.99% for the first time in more than four years – although the dropped a little shortly after.
Also in focus in the morning in Asia were tech stocks, with semiconductor makers continuing to slide. On Friday, Apple (NASDAQ:AAPL) took a hit in U.S. trading, falling 4.1%, and Taiwan Semiconductor Manufacturing Co (NYSE:TSM) , Apple’s main chip supplier, gave up 7% the same day after it trimmed its full year revenue target.
One company in focus on Tuesday was South Korea’s SK Hynix Inc (KS:000660)., the second largest maker of memory chips in the world after Samsung Electronics (KS:005930). Hynix released earnings on Tuesday that met market expectations with operating profits rising 77%. The company’s stock still dropped 4.03% on South Korea’s stock exchange as of 9PM ET (01:00 GMT). Earnings season continues this week with Samsung among the companies expected to release results Tuesday.
Hong Kong shares are coming off a loss Monday that followed on the heels of a weekly loss last week, the fourth in five weeks. The Hang Seng Index ended Monday down 0.54% and was trading up 0.26%.
Investors in Hong Kong as well as mainland China remain concerned about the prospects for increased trade tension between China and the U.S.
Trade tensions between China and the U.S. are still in focus and are likely to remain a motivator for investors. On Monday, the Shanghai Composite Index fell 0.1% but the big news was the fate of tech company ZTE Corp-H (HK:0763), which the U.S. has banned from selling parts and software. ZTE stock is currently halted from trading in both Hong Kong and Mainland China bourses.
In Shanghai, the Shanghai Shenzhen CSI 300 was trading up 0.37% shortly after the opening on Tuesday, after closing the day flat on Monday. The tech heavy SZSE Component was up 0.42% Tuesday morning.
Japan’s Nikkei 225 moved up in the morning, climbing 0.56% to 22,211.50.
Japanese stocks were supported by a weaker yen. The USD/JPY dropped as the dollar climbed thanks to increases in yields of US Treasuries. Yields on United States 10-Year notes are close to 3%, the highest level since early 2014.
Australian stocks also moved up, with the S&P/ASX 200 rising 0.26%.
The South Korea KOSPI was marginally down in morning trade, giving up early gains to drop 0.58%.
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