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Asia Markets: Tumbling tech stocks lead Asian-market slide

Technology stocks led the way lower in Asia on Wednesday, dragged by way of the sector’s slide within the U.S.

The Nikkei Stock Average NIK, -1.74%   sank as much as 2.5% in early trading, led by way of power, transportation and tech stocks. The index jumped 2.7% on Tuesday, but used to be closing down 2.1% despite the fact that the yen reversed one of the vital good points it made in U.S. afternoon trading.

South Korea’s Kospi SEU, -1.38%   slid 1.5%, with index heavyweight Samsung Electronics 005930, -2.56%  alling 2.9%.

Other inventory benchmarks in Asia Pacific fell not up to 1% early on Wednesday, despite the fact that New Zealand’s NZX-50 NZ50GR, -1.41%   skidded 1.5%. The New Zealand marketplace used to be weighed by way of a2 Milk ATM, -6.50%  , the country’s biggest company by way of marketplace capitalization, which sank 7% on a document that Nestlé NESN, +1.37%   has launched a competing infant-formula product in China. Still, a2 Milk stocks are up 60% this yr. Markets in Shanghai SHCOMP, -1.11%   and Hong Kong HSI, -1.47%   have been down almost 1%/

Some conventional secure havens noticed purchasing. Gold futures and government-bond costs rose.

The 10-year Treasury yield fell, and hit levels closing seen in early February at 2.78%, “as bond buyers reacted to turmoil surrounding technology stocks, specifically Facebook,” analysts from Lucror Analytics wrote in a analysis document. The yield on 10-year German bunds dropped to zero.5% for the first time in almost three months; yields fall when bond costs upward push.

Analysts from Société Générale stated pricing reflects “a scenario of extreme prudence” from the European Central Bank but would look “stretched” if the central financial institution ends its bond-buying program in 2018 and starts elevating charges the next yr.

In commodities markets, oil futures are down zero.6%, maintaining the drop seen after the U.S. settlement Tuesday as costs have been hit by way of the slide in U.S. stocks.

Write to Gregor Stuart Hunter at [email protected]