Asian shares fall after Wall Street’s worst day in weeks
Shares in Asia declined on Monday after China reported a drop in investment for November, signaling continued weakness in demand in the world’s second-largest economy.
The retreat followed a weak finish to last week, when declines in major artificial intelligence stocks dragged Wall Street off record highs, News.Az reports, citing AP.
Tokyo’s Nikkei 225 index fell 1.5% to 50,092.10 as investors awaited the Bank of Japan’s anticipated decision on whether to raise its benchmark interest rate this week.
The BOJ’s quarterly “tankan” survey of large manufacturers, released Monday, showed a slight improvement in sentiment, with the proportion of businesses expressing optimism rising to 15 from 14 in the previous quarter—the highest level in four years. The survey measures the percentage of companies reporting positive conditions minus those reporting unfavorable conditions. While overall sentiment improved, forecasts for the next quarter were less optimistic.
Japan’s economy contracted at a 2.3% annualized rate in the July–September quarter, marking the first decline in six quarters. Meanwhile, an agreement between Japan and the U.S. limiting baseline import duties to 15% under President Donald Trump’s higher tariff framework has helped reduce uncertainty for major automakers and electronics companies.
Elsewhere in the region, Australia's S&P/ASX 200 slipped 0.7% to 8,640.60 and Taiwan's benchmark lost 1.1%.
The futures for the S&P 500 and the Dow Jones Industrial Average were up 0.3%.
On Friday, the S&P 500 fell 1.1% from its all-time high for its worst day in three weeks, closing at 6,827.41. The weakness for tech stocks yanked the Nasdaq composite down by a market-leading 1.7%, to 23,195.17.
The Dow gave back 0.5% to 48,458.05.
AI heavyweight Broadcom dragged the market lower and tumbled 11.4% even though the chip company reported a stronger profit for the latest quarter than analysts expected. Analysts called the performance solid, and CEO Hock Tan said strong 74% growth in AI semiconductor revenue helped lead the way.
The drop added to worries about the AI boom that flared a day before, when Oracle plunged nearly 11% despite likewise reporting a bigger profit for the latest quarter than analysts expected.
Chip maker Nvidia fell 3.3%, while Oracle fell another 4.5%.
Stocks of companies that depend on spending by U.S. consumers were relatively strong Friday, as two out of every five stocks within the S&P 500 rose. Oil prices eased this week, which could help ease people's bills, and
In other dealings early Monday, U.S. benchmark crude oil gained 30 cents to $57.74 per barrel. Brent crude, the international standard, rose 29 cents to $61.41 per barrel.
The U.S. dollar slipped to 155.37 Japanese yen from 155.75 yen late Friday. The euro was unchanged at $1.1739.
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