Investing.com– Most Asian stocks fell on Thursday, as technology stocks followed weakness in their U.S. peers after less-than-encouraging guidance from chipmaker Micron.
Chinese stocks posted sustained losses as weak industrial earnings data further soured sentiment towards the country, as traders awaited further developments in a potential trade war with the West.
Regional markets took their cues from Wall Street, which closed slightly higher amid uncertain trading. But U.S. stock index futures fell Thursday as poor revenue guidance from Micron Technology Inc (NASDAQ:) prompted investors to dump chip stocks.
Even the wait for the main US data (and the presidential debate) kept the sentiment critical.
Asian tech and chip makers sink with Micron subdued
Asian stocks, which are very important from a technological perspective, were among the worst regional performers on Thursday. The Japanese lost 1.2%, while the South Korean lost 0.5%.
A mix of technological weakness and nervousness about China caused the Hong Kong index to slip 1.7%.
While Micron’s quarterly earnings beat expectations, revenue guidance for the current quarter disappointed investors who were hoping for more, especially considering the stock has seen a valuation surge of more than 100% compared to last year. Micron fell nearly 8% in after-hours trading.
The less-than-encouraging indications have raised some doubts about an AI-driven demand boom, and also prompted investors to take some recent profits in tech stocks.
Chinese stocks fall on weak industrial earnings data
China’s indexes fell 0.7% and 0.9% respectively, after data showed the country’s growth shrank in May.
The reading raised concerns that economic growth in Asia’s largest economy will slow and that Beijing will need to take further stimulus measures in coming months to support growth.
The Chinese Communist Party will hold its Third Plenum – a key meeting of high-level officials – in July, where it is likely to unveil further measures to support the economy.
But sentiment toward China has already remained muted in the face of a potential trade war with the West, after the European Union joined the United States in imposing import tariffs on Chinese electric vehicles.
Broader Asian markets were broadly negative. The Aussie fell 1%, extending sharp losses from the previous session after a warmer-than-expected inflation reading increased concerns about a potential interest rate hike by the Reserve Bank.
Futures for the Indian index pointed to a muted open, with the index expected to take a breather after hitting a series of all-time highs this week.
