Technology shares led losses across Asia on Tuesday as the prospect of stronger Chinese competition unsettled South Korea’s chipmakers. US stocks closed mixed on Monday, with tech shares under pressure, while European equities gained. Investors are awaiting German inflation figures and earnings from major US banks later on Tuesday.
South Korea’s KOSPI fell 5.5% to 6030.64 points on Tuesday after reports of a memory-chip advance by China’s CXMT weighed on Samsung Electronics and SK Hynix. Japan’s Nikkei 225 dropped 1.9%, while doubts about returns on artificial intelligence (AI) investment added to the pressure on technology shares. Brent crude oil futures fell 1.2% to USD 105.40 per barrel, while West Texas Intermediate (WTI) futures declined 1.3% to USD 92.52 per barrel. Gold rose 0.6% to around USD 4200 per ounce, while bitcoin slipped 0.4% to about USD 83,700.
The Nasdaq-100 fell 0.7% to 30,664.70 points on Monday as investors took profits in chipmakers ahead of the US corporate earnings season. The S&P 500 slipped 0.1% to 7807.24 points, while the Dow Jones rose 0.4% to 51,850.55 points. Trading was subdued during the Columbus Day holiday, which also kept the bond market closed. Among individual stocks, chipmaker Micron Technology fell 4% on Monday as investors weighed progress by a Chinese competitor.
The euro fell to USD 1.1156 on Monday evening from USD 1.1176 late in the afternoon, while the US dollar rose to CHF 0.8348 from CHF 0.8332. The euro was little changed against the Swiss franc at CHF 0.9314. Weak European data, concerns about French debt and speculation about higher US interest rates supported the US dollar.
The euro-area EuroStoxx 50 rose 0.5% to 6201.21 points on Monday, helped by an EU-China agreement on hybrid-car export restrictions. Switzerland’s SMI gained 0.7% to 13,877.84 points. Stabilising bond markets and gains in Roche and Novartis supported Swiss shares, although rising oil prices tempered sentiment. Separately, LVMH reported third-quarter organic sales growth of 1%, below expectations, as fashion and leather goods sales fell 5% amid weak demand in China.
Corporate news in focus: Quarterly figures from Citigroup, Givaudan, Goldman Sachs, Johnson & Johnson, JPMorgan, Rio Tinto, UnitedHealth, and Wells Fargo.
Economic data in focus: German Consumer Price Index (08:00), US existing home sales (16:00).
Global economic and market trends at a glance
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Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.
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