Investing.com– Most Asian stocks fell on Thursday as rising U.S. Treasury yields pressured technology stocks, while weak economic prints from several regional economies also weighed on sentiment.
Regional markets took a weak lead-in from Wall Street, as heavyweight technology stocks fell amid pressure from high yields and as increased risk aversion saw investors lock-in recent profits.
Uncertainty over a tight presidential race and a slower pace of interest rate cuts dented Wall Street in recent sessions.
But U.S. stock index futures rose in Asian trade, buoyed by positive earnings from Tesla Inc (NASDAQ:).
Asia tech tracks US losses
Tech-heavy bourses were the worst performers in Asian trade, tracking overnight losses on Wall Street.
South Korea’s lost 0.2%, while Hong Kong’s index fell 0.7%.
Tech stocks were pressured chiefly by rising U.S. Treasury yields, as markets positioned for a slower pace of interest rate cuts by the Federal Reserve.
The was also dented by softer-than-expected data from South Korea, which showed the economy barely grew in the third quarter.
Still, there were some bright spots among Asian tech. South Korean memory chip giant SK Hynix Inc (KS:) rose 1% after posting record third quarter earnings on strong demand from artificial intelligence.
In Hong Kong, Horizon Robotics surged 28% in their first trading day after a $696 million IPO- the biggest Hong Kong IPO in 2024.
Chinese electric vehicle stocks lagged even as rival Tesla rallied sharply in aftermarket trade.
Japanese shares muted after soft PMIs
Japan’s index rose slightly, while the shed 0.2% after purchasing managers index data showed an unexpected contraction in business activity in October. Both and PMIs contracted in the month.
The weak reading was largely attributed to soft economic conditions in the country, while private spending also appeared to be cooling after an initial bump earlier this year.
Sentiment towards Japanese stocks was on edge before a general election this Sunday, where the ruling Liberal Democratic Party could be pushed into seeking a coalition to retain power.
The Bank of Japan is also set to meet next week.
Broader Asian markets moved in a flat-to-low range. China’s and indexes fell 0.6% and 0.4%, respectively, losing steam after four straight days of gains on optimism over more stimulus measures.
Australia’s rose 0.3% even as PMI data showed a sustained contraction in activity. But activity grew at a slightly faster pace in October.
Futures for India’s index pointed to a mildly positive open after three days of losses.
A string of key Indian earnings are due later in the day, with a highlight being consumer goods giants ITC Ltd (NS:) and Godrej Consumer Products Ltd. (NS:). Indian PMI data is also on tap.