Asia Tech Shares Decline as Yen Whipsaws Post Rally – Asia Market Wrap

Asian technology stocks fell Friday, mirroring Wall Street’s falls as slowing US inflation prompted a rotation out of Big Tech. The yen was volatile.

A barometer of Asian technology stocks sank up to 3.2%, with losses concentrated in Japan and South Korea. That came after the Nasdaq 100 fell 2.2% as inflation statistics strengthened the case for rate reduction, prompting investors exodus from the long-favored safety trade of tech megacaps.

The yen fluctuated on Friday as the Bank of Japan conducted so-called rate checks with traders, fueling speculation that authorities intervened in the market on Thursday to support the currency.

Chinese shares in Hong Kong rose on hopes of policy support from the mainland’s approaching Third Plenum. A barometer of Chinese property developers rose more than 6%.

Despite the current setback, global equities are on track for their sixth weekly gain, the longest streak since March, as Fed easing expectations boost overall risk sentiment.

Treasury yields crept up after the possibility of lower US interest rates drove 10-year yields down seven basis points to 4.21% in the previous session. Government bonds in Australia and New Zealand rose in response to their counterparts in the United States. The dollar index remained stable after plummeting by the most since May on Thursday.