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Asian Stocks Fall as Selloff in Tech Equities Continue

By Investors Hub

Asian stocks fell across the board on Tuesday as global growth worries persisted and a sell-off in technology stocks continued on worries about slackening demand.

Chinese shares fell the most in three weeks as investors remained skeptical about the outcome of a meeting between U.S. President Donald Trump and Chinese President Xi Jinping at the G20 summit in Argentina later this month.

The benchmark Shanghai Composite Index tumbled 57.66 points or 2.1 percent to 2,645.85, while Hong Kong’s Hang Seng Index plunged 2 percent to close at 25,840.34.

Japanese shares hit a three-week low, with a sell-off by technology stocks and news of Nissan Chairman Carlos Ghosn’s arrest weighing on the markets. The Nikkei 225 Index slumped 238.04 points or 1.1 percent to 21,583.12, the lowest closing level since October 31st. The broader Topix Index closed 0.7 percent lower at 1,625.67.

Tokyo Electron, TDK Corp., Advantest and Murata Manufacturing shed 2-3 percent following a sharp overnight sell-off in stocks such as Facebook, Apple and Amazon on Wall Street.

Nissan Motor plunged 5.5 percent on news of Ghosn’s arrest and dismissal from the company?s board over alleged financial misconduct.

Another alliance member Mitsubishi Motors slumped 6.9 percent, while Nissan supplier Nissan Shatai fell 2.5 percent and dealer Nissan Tokyo Sales Holdings declined 4.1 percent.

Australian markets fell modestly to extend losses for a third straight session on global growth worries and skepticism over how the U.S. and China will be able to make progress in trade talks.

The benchmark S&P/ASX 200 Index dropped 21.90 points or 0.4 percent to 5,671.80, while the broader All Ordinaries Index ended down 27.20 points or 0.5 percent at 5,759.20.

Tech shares underperformed after reports that Apple is cutting production orders for its newest iPhones. Xero tumbled 5.4 percent and Altium plummeted 9.4 percent.

Drugmaker CSL fell 3.6 percent as the U.S. dollar hit a nearly two-week low against its peers, pressured by cautious comments about the U.S. economy from Federal Reserve officials and data pointing to a continued slowdown in the U.S. housing market.

Meanwhile, financial stocks rebounded after sliding for six consecutive sessions, with the big four banks rising between 0.6 percent and 1.3 percent.

Miners BHP Billiton, Rio Tinto and Fortescue Metals Group rose between 0.6 percent and 0.9 percent, while energy stocks such as Woodside Petroleum, Santos, Origin Energy and Oil Search lost 1-2 percent.

On the economic front, minutes from the Reserve Bank of Australia?s November 6th meeting offered little hawkish or dovish surprise.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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