On Tuesday, the Asia-Pacific markets experienced a downturn, primarily driven by decreases in the benchmark indexes of Japan and South Korea, in the wake of a technology-driven decline. Japan’s benchmark Nikkei 225 experienced a decline of 3.22%, closing at 48,702.98, while the Topix saw a decrease of 2.88%, finishing at 3,251.1. South Korea’s Kospi experienced a decline of 3.32%, settling at 3,953.62, whereas the small-cap Kosdaq fell by 2.66% to 878.7.
The Hang Seng index in Hong Kong experienced a decline of 1.72%, while the CSI 300 of mainland China decreased by 0.65%, settling at 4,568.19. Australia’s benchmark index experienced a decline of 1.94%, settling at 8,469.1. Yields on Japan’s 20-year government bonds increased nearly 4 basis points to 2.78%, marking the highest level since July 1999, according to data from LSEG, while yields on the 10-year government bond increased by approximately 2 basis points, reaching 1.751%.
Overnight in the U.S., stocks experienced a pullback, hindered once more by declines in the technology sector, as Wall Street anticipated significant releases this week, including Nvidia’s earnings report and the jobs data for September. The Dow Jones Industrial Average experienced a decline of 557.24 points, equivalent to 1.18%, concluding at 46,590.24. This downturn was driven by losses in the artificial intelligence chip sector, alongside Salesforce and Apple, which collectively exerted downward pressure on the blue-chip index.
The S&P 500 declined by 0.92%, concluding the day at 6,672.41, whereas the Nasdaq Composite fell by 0.84%, finishing at 22,708.07. Nvidia experienced a decline of nearly 2% in anticipation of the company’s third-quarter results, set to be released after the market closes on Wednesday. The chipmaker and other entities within the AI sector faced recent headwinds as investor sentiment shifted towards concerns regarding elevated valuations. Blue Owl Capital, a private credit lender, experienced a decline of nearly 6% due to apprehensions regarding its substantial lending associated with the AI data center expansion.