Asian markets follow Wall Street lower as tech sell-off continues
The Hang Seng Tech Index — a new index tracking the 30 largest tech firms listed in Hong Kong — sank more than 3%. Alibaba, JD.com and semiconductor giant SMIC all lost at least 4%. (Tech stocks will soon become even more important for Hong Kong’s benchmark Hang Seng Index, which adds Alibaba and Xiaomi next week — a reflection of the growing number of Chinese tech firms trading in the city.)
Asian markets are “catching a cold” after the “US market sneezing” last night, Jingyi Pan, a market strategist for IG, wrote in a Friday research note.
Futures for all three US indexes continued to trend lower in after-hours trading.
“Market corrections are to be expected,” said Kerry Craig, global market strategist for JP Morgan Asset Management, in a Friday research note. “A market fueled by central bank largesse, economic surprises and record earnings beats in the last few months was never going to maintain its heady pace forever.”