Asian shares down on EM concerns, IT sector outlook


Sun, Sep 09, 2018 - Page 14

Asian stocks on Friday capped the worst week since March, due to continuing worries about emerging markets (EM) and the outlook for the technology sector’s earnings.

Equities fell in Japan, South Korea and Australia, while stocks in China posted gains.

Technology shares lagged behind, following their US counterparts lower amid concern about the durability of chip demand.

Emerging-market stocks steadied after entering a bear market, while currencies advanced.

The weighted index on the Taiwan Stock Exchange ended down 77.31 points, or 0.71 percent, at 10,846.99. The TAIEX fell 2 percent from last week’s 11,063.94 points.

The MSCI Asia Pacific Index fell 0.34 percent to 160.07, down 3.3 percent for the week.

The Hang Seng index in Hong Kong on Friday ended down just 1.35 points at 26,973.47, while the China Enterprises Index closed 0.18 percent lower at 10,559.54 points.

The sub-index of the Hang Seng tracking energy shares ended 1 percent higher, while the IT sector closed 0.48 percent firmer, the financial sector ended 0.43 percent lower and property sector closed down 0.09 percent.

As of previous trading session, the Hang Seng index was down 9.84 percent this year, while China’s H-share index was down 9.7 percent.

Hong Kong shares finished flat on Friday, after touching their lowest levels since July last year, amid concerns that a new set of US-Chinese tariffs could come into effect after the deadline for a public comment period for proposed tariffs passed.

The administration of US President Donald Trump is ready to move ahead with a next round of tariffs on US$200 billion worth of Chinese imports after a public comment period ended at midnight in Washington on Thursday, but the timing is uncertain, people familiar with the administration’s plans told reporters.

The Hang Seng slipped 3.28 percent this week.

Japan’s TOPIX fell 0.5 percent to 1,684.31, down 3 percent for the week, while the Nikkei lost 0.8.

In South Korea, KOSPI fell 0.3 percent to 2,281.58, losing 1.8 percent on the week.

Australia’s S&P/ASX200 Index on Friday retreated 0.3 percent.

Additional reporting by Reuters and CNA, with staff writer