Bangkok - Samsung Electronics and Tencent Holdings tumbled as a US technology selloff spread to Asia, sparking the biggest drop of the year for a regional index of stocks in the industry.
The MSCI Asia Pacific Index slipped for a third day, falling 0.3% to 154.36 as of 4:32% in Hong Kong, with technology shares in the gauge dropping the most since December.
Samsung Electronics pushed South Korea’s Kospi Index lower to its biggest loss in three months.
Hong Kong’s Hang Seng Index slid as Tencent shares slumped 2.5%. Taiwan Semiconductor Manufacturing contributed to the worst performance for the Taiex index since April 19.
The US technology stock slide began when Robert Boroujerdi, global chief investment officer at Goldman Sachs Group, warned that low volatility in Facebook, Amazon.com, Apple, Microsoft and Google parent Alphabet may be blinding investors to risks such as cyclicality and regulation.
"Technology stocks will continue to encounter some selling pressure because of their excessive valuations," said Komsorn Prakobphol, a strategist at Tisco Financial Group in Bangkok.
"Concern about possible rise in the US interest rates will also cloud the outlook of Asian shares especially those emerging markets."
Japan’s Topix little changed, Nikkei 225 -0.5%. Apple suppliers weigh on Tokyo shares after US Technology Rout Hong Kong HSI -1.2%. HSCEI -1%, SHCOMP -0.6%Tencent, AAC lead China technology retreat after US selloff.
South Korea’s Kospi -1%, Taiex -0.9% India’s S&P BSE Sensex -0.6%India’s Sensex Drops Most in two weeks, Led by Technology Stocks Indonesia’s Jakarta Composite Index +0.7%, Vietnam’s VN Index +0.2%.
Thailand’s SET Index -0.2%, Singapore’s STI -0.2% Australia, Malaysia and Philippine markets closed for holidays.Read Fin24's top stories trending on Twitter: Fin24’s top stories