Asian stocks fall due to tech losses from Micron and weak industrial profits data in China.

From Investing.com: 2024-06-26 22:27:06

Most Asian stocks fell on Thursday, with tech shares tracking weakness in U.S. counterparts after disappointing guidance from Micron. Chinese stocks also dipped due to weak industrial profits data, raising concerns about economic growth. Market sentiment was cautious amid looming U.S. data releases and the Presidential debate.

Asian tech and chipmakers were hit hard by Micron’s underwhelming guidance, with Japan’s index dropping 1.2% and Hong Kong’s index sliding 1.7%. Despite beating earnings expectations, Micron’s revenue outlook for the current quarter fell short, leading to a sell-off in tech stocks as investors took profits.

Chinese stocks declined as industrial profit data showed a narrowing growth in May, signaling slowing economic growth in the country. Concerns over a potential trade war with the West and the need for more stimulus measures from Beijing added to the negative sentiment. Other Asian markets also saw losses, with Australia’s index slipping 1%.

Sentiment towards China remained weak amid fears of a trade war escalation, with the EU imposing import duties on Chinese electric vehicles. The upcoming Third Plenum meeting in July, where economic support measures may be unveiled, could provide some relief. Meanwhile, Indian markets were set for a flat open, following a series of record highs earlier in the week.



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