ASIAN SHARES MIXED AS WALL TECH SELL-OFF CONTINUES
Asian shares were mixed Friday following a selloff of technology shares on Wall Street, Yuri Kageyama wrote for the Associated Press (AP) late on Friday, September 11, 2020.
Japan’s benchmark Nikkei 225 recouped early losses to rise 0.6% to 23,383.87. South Korea’s Kospi dropped 0.1% to 2,394.09, while Australia’s S&P/ASX 200 lost 0.8% to 5,859.40. Hong Kong’s Hang Seng gained 0.7% to 24,471.29, while the Shanghai Composite rose 0.6% to 3,255.28. Shares were lower in Taiwan but mixed in Southeast Asia. Analysts say investors are preoccupied with the coronavirus pandemic and hopes for development of a safe, effective vaccine.
In Wall Street, the S&P 500 fell 1.8% to 3,339.19, its fourth decline in five days. The index is on pace for its second straight weekly loss. The Dow Jones Industrial Average dropped 1.5%, to 27,534.58. The Nasdaq gave up 2% to 10,919.59. The Russell 2000 index of smaller company stocks lost 1.2%, to 1,507.75.
While Big Tech is benefiting from the shift to online life that the pandemic and ensuing stay-at-home economy has accelerated, critics said their stocks prices have surged too high. “Big tech stocks might have seemed like safe havens, but they have found themselves at the center of a brutal sell-off,” said Stephen Innes, chief global market strategist at AxiCorp. The catch is that progress in curbing COVID-19 could hurt technology shares, Innes said. “But keep your eye on the prize. A virus vaccine is a key to the second leg of growth recovery, which will be globally-coordinated and could run for a while as doses are distributed gradually,” he said.
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