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(Bloomberg) Asian stocks dropped, with the regional benchmark briefly erasing its gains for the year, as mounting worries over inflation and a resurgence in Covid-19 cases soured investor sentiment.
The MSCI Asia Pacific Index slid as much as 1% and was down 0.9% as of 12:52 p.m. in Tokyo, tracking losses in American shares after data on Wednesday showed U.S. consumer prices climbed in April by the most since 2009. The Asian gauge has now fallen more than 9% from a Feb. 17 peak.
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By Xie Yu and Joanne Chiu U.S. technology stocks have slipped into correction territory. Chinese technology stocks have fallen even more. An index of the largest technology stocks listed in Hong Kong has dropped 26% in less than three weeks, reflecting how a sudden turn in the market has snowballed into significant losses for investors who piled into popular stocks earlier this year. The Hang Seng Tech Index which tracks 30 companies including Chinese internet giants Tencent Holdings Ltd. and Alibaba Group Holding Ltd., and smartphone maker Xiaomi Corp. closed Tuesday at its lowest level in 2021 and is now in bear-market territory, defined as a drop of at least 20% from a recent high.
ASX to rise; Dow advances on rotation trade
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Australian shares are poised to open higher. On Wall Street, the Dow reset its record high, though the buying pace eased as the session progressed.
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ASX futures were up 48 points or 0.7 per cent to 6782 near 8am AEDT, paring their earlier surge. The local currency slipped 0.5 per cent. The yield on the US 10-year note rose 3 basis points to 1.60 per cent.
“We are getting a healthy reset of richly valued stocks due to rising cost of capital and it can be violent,” Peter Garnry, head of quantitative strategies at Saxo Bank, said in a tweet.
By Reuters Staff
3 Min Read
SHANGHAI, March 8 (Reuters) - China stocks fell the most in more than seven months on Monday, as a lower-than-expected 2021 economic growth target from Beijing sparked concerns that Chinese officials could tighten policy to rein in lofty valuations. The blue-chip CSI300 index fell 3.5% to 5,080.02, posting its worst day since July 24, 2020. The Shanghai Composite Index lost 2.3% to 3,421.41. Leading the declines, the CSI300 consumer staples index and the CSI300 healthcare index slumped 5.7% and 6.4%, respectively, while the CSI new energy index dropped 5.3%. China on Friday set a modest annual economic growth target, at above 6%, which was significantly below the consensus of analysts, who expect growth could beat 8% this year.