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27/06/24
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Stocks Across Asia Decline as China Data and Micron Guidance Weigh on Markets
Most stocks across Asia declined on June 27 as tech shares followed the performance of their peers in the United States, after chipmaking major Micron came up with an underwhelming outlook.
Stocks in China were able to extend their losses as sentiment towards the Asian country became sour due to weak industrial profits data. Market participants were also awaiting more developments in a possible trade war with the West.
Wall Street ended somewhat higher in choppy trade and regional markets seemed to follow suit. Investors dumped chipmaking stocks after Micron Technology Inc released middling revenue guidance, and United States stock index futures turned downward on Thursday.
Sentiment remained skittery as markets anticipate major United States cues from personal consumption expenditures price index data as well as the presidential debate.
Tech-heavy stocks across Asia were among those with the worst performance of the day, with Japan’s Nikkei 225 declining 1.2 percent and South Korea’s KOSPI losing 0.5 percent. Hong Kong’s Hang Seng index fell by 1.7 percent as China jitters and tech weakness weighed on performance.
Quarterly earnings from Micron Technology Inc were higher than anticipated but its guidance for Q2 came in disappointing, as its valuation has sustained a more than hundred percent rise since 2023. The chipmaker’s stock declined by almost 8 percent in after-hours trade.
In response to the disappointing guidance, market participants are concerned about the booming demand driven by artificial intelligence, influencing investors to take some of the profits gained in tech stocks recently.
Shanghai Shenzhen CSI 300 and Shanghai Composite indexes declined by 0.7 percent and 0.9 percent, respectively, following data suggesting narrowing industrial profits in China last month. The data raised concerns that China’s economic growth is slow and the authorities will be compelled to introduce more stimulus measures to enhance growth.
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