Asian tech stocks fell on Tuesday as investors worried about AI spending and earnings. Oil steadied after the previous session's tumble, with US midterm voting about to begin.
Asian tech shares came under fresh pressure on Tuesday as investors fretted over AI spending and earnings. MSCI's broadest index of Asia-Pacific shares outside Japan was down 1.4%, its lowest level since October 23.
South Korean and Taiwanese shares drop
South Korean shares fell as much as 4.1%. Taiwanese shares slid 3.3%, which put the local benchmark on track to confirm a technical correction after losses reached 13.1% from a record high in early October.
Shares in China fell 1.4%, with investors disappointed at the latest moves by authorities to shore up the market. Australian shares bucked the trend and rose 0.3%, while Japanese markets were closed for a holiday.
S&P 500 slips and Apple forecasts lower margins
Overnight, the S&P 500 slipped 0.5%. S&P 500 e-mini futures edged lower for a fourth consecutive day, off 0.1%.
Apple shares fell 2.8% in after-hours trading after the company forecast lower gross margins for the holiday quarter, citing rising memory-chip costs. It also projected services revenue growth that fell short of Wall Street expectations.
Midterms and oil keep traders cautious
Voting in the US midterm elections is set to begin, and President Donald Trump's Republican Party faces a challenge to keep its hold on Congress. According to ING analysts: "Tuesday will be nothing more than the day ahead of a much bigger day"
By the next day, the market will have guidance on the midterm implications and the US Treasury's quarterly refunding announcement, ING said. The yield on the US 10-year Treasury bond was up 2.1 basis points at 4.913%.
Oil prices steadied after a fall, with Brent crude up 0.5% at $105.30 in Asian trading as investors weighed the state of peace talks between the US and Iran.
Source: Investing.com
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