Japanese stocks faced significant selling pressure on Tuesday. The Nikkei 225 index closed down 2.53% at 64,536.79 points, with a market value evaporating by approximately 31.8 trillion yen, equivalent to 202 billion US dollars. Tech stocks were the main drag, and the selling sentiment then spread to other Asian markets.
The South Korean stock market also was not spared. The KOSPI composite index closed down 2.41% at 6,671.12 points, with stocks in technology and export sectors under pressure. Although South Korea's annual inflation rate of 3.1% was slightly lower than the market's expectation of 3.2%, this data did not significantly boost risk appetite.
Regional markets are weakening simultaneously.
- Stock markets in Japan and South Korea both recorded declines of over 2%.
- Funds are mainly withdrawing from technology and export-related sectors.
- Inflation data failed to reverse market sentiment.
This round of decline shows that Asian markets are still affected by the volatility of tech stocks. The significant drop in the daily market value of the Japanese stock market is particularly notable, reflecting the growing concerns of investors regarding sectors with high valuations.
