Asian Stocks Decline

last updated on

Asian Stocks Decline

Asian Stocks Decline On Tech Losses

The majority of the Asian stocks are in red on Wednesday... They are weighed down heavily by the technology shares especially the chip stocks.

All of this happens as the ASML has shared a weak outlook regarding chip usage. At the same time, the Chinese stimulus measures were not sufficient enough to improve the traders' sentiment.

In fact, most of the Chinese markets are in steep losses and are now waiting for the Chinese officials to offer clarity on the stimulus package.

Meanwhile, the regional markets are also weak and are taking cues from Wall Street. In the US markets, the chip stocks are also down & have even dragged the US stock indexes lower with them.

If we look at the Asian markets, the Nikkei 225 is down by 1.9%, with Samsung, SK Hynix, and KOSPI registering mild losses.

All of this is driven by ASML Holding NV (ASML), which posted a weaker sales guidance for the year 2025. According to them, the demand for chips will become less.

ASML is one of the top suppliers of equipment used in the chip-making process. So, any news or reports from them carry a lot of credibility. The recent report pushed the ASML shares down by 16% during the same trading session.

If we look around, Taiwans TSMC is also down by 2%, which is similar to what we saw in the ASML. Up ahead, Taiwans TSMC is also scheduled to release its earnings for the Q3 on Thursday.

Over all, the losses in the tech sector have also spiralled out into other sectors. This has pushed Wall Street into losses along with most Asian markets.

ASX 200 is also no exception, as it is down by 0.3% from its recent highs. In the Australian market, Rio Tinto Ltd (ASX:RIO) has shed 1% of its value after posting weak results.

The Nifty 50 futures contract is also showing signs of weakness and has started the week on a weaker note. In fact, the index is struggling to cross the 25K level.

Trending Stories