Asia: Markets dip after US tech slide

Asian markets mostly fell on Wednesday (Aug 20) morning, mirroring a rout of US tech titans the previous day as investors await signals of an interest rate cut in the world’s largest economy.

The dips also came after top US and European military leaders met in Washington on Tuesday to discuss the mechanics of a possible Ukraine peace deal.

Recent days have seen a whirlwind of diplomatic efforts to resolve the protracted war after US President Donald Trump’s high-stakes meeting with Russian counterpart Vladimir Putin in Alaska.

Eyes are now on potential face-to-face talks between Putin and Ukrainian President Volodymyr Zelensky, who has said that he is ready for such a meeting.

The negotiations have sparked volatility in oil markets, which fell back on Tuesday from gains made on Monday.

Tokyo’s Nikkei dropped sharply during Wednesday morning trading, while shares in Hong Kong, South Korea, Taipei and Bangkok also fell. Shanghai, Sydney and Manila rose.

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The previous day on Wall Street saw several major technology firms lose significant market share, including Nvidia, Palantir and Oracle.

The sell-offs come amid increasing unease over a prolonged rally in tech stocks this year despite a range of uncertainties facing the global economy.

Among the challenges are biting tariffs unleashed by Trump on major US trading partners this year.

Official data showed on Wednesday morning that Japanese exports suffered their steepest drop in more than four years last month.

Meanwhile, investors are eagerly awaiting a speech on Friday by US Federal Reserve chair Jerome Powell at the annual retreat of global central bankers in Jackson Hole, Wyoming.

Traders also hope Powell will provide more clues about a widely expected interest rate cut at the Fed’s next policy meeting in September, after data last week provided a mixed picture about inflation in the United States.

“Powell’s Wyoming speech is being framed as a high-wire act,” wrote Stephen Innes of SPI Asset Management in a note.

“Too dovish, and he risks stoking long-end inflation fears; too stern, and he risks yanking the oxygen mask off equities already trading in rarified air.” AFP