SYDNEY (Reuters) - Asian shares skidded on Tuesday, pressured by a tech rout on Wall Street and a slump in oil prices, while political risks in Europe buoyed the dollar as investors dumped riskier assets.
Fears of a likely peak in corporate earnings growth, softening global demand and faster rate hikes in the United States have put global investors on edge over the past month, prompting them to take money off the table before year end.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dropped 1.4 percent to a 1-1/2 week low.
Japan's Nikkei .N225 dived 3.2 percent, led by losses in electric machinery makers and suppliers of Apple's (AAPL.O) iPhone parts after three suppliers issued warnings on results, sending tech-heavy Nasdaq .IXIC slumping over 2 percent.
The grim outlook triggered a steep selloff in Asian tech firms, with shares in Japan Display (6740.T) plummeting over 11 percent while Murata Manufacturing (6981.T) and TDK Corp (6762.T) dived as much as 8.9 percent and 8.4 percent respectively.
Taiwanese suppliers of the iPhone such as Genius (3406.TW), Pegatron (4938.TW) and Hon Hai (2317.TW) were also deep in red.
“Market participants are gradually thinking that this technology stocks boom is going to end before long,” said Yoshinori Shigemi, Japan-based global market strategist at JPMorgan Asset Management.
“Lower oil prices are another headwind for U.S. stock markets, specially the energy sector.”
“We are suggesting our clients to shift from any technology stocks to quality names, stocks with high return-on-equity and low leverage,” Shigemi said without naming
