By Ambar Warrick
Investing.com– Asian stocks fell sharply on Monday, with Chinese chipmakers leading declines on new U.S. trade curbs, while broader sentiment was dented by fears of more hawkish measures from the Federal Reserve.
The blue-chip Shanghai Shenzhen CSI 300 index sank 0.9%, while the Shanghai Composite index shed 0.4%. Chipmaking stocks including Anji Microelectronics Tech Co Ltd (SS:688019) and Chengdu Xuguang Electronics Co Ltd (SS:600353) plummeted as much as 20% after the White House unveiled export controls cutting off Chinese companies from certain semiconductor chips made with U.S. equipment.
Hong Kong stocks were also rattled by the move, with the Hang Seng index losing nearly 3%. Tech heavyweights Alibaba Group Holding Ltd (HK:9988), Baidu (NASDAQ:BIDU) Inc (HK:9888) and Tencent Holdings Ltd (HK:0700) fell between 2% and 4%.
The U.S. move threatens to worsen trade ties between the two largest economies in the world, and could have deeper economic implications if China retaliates.
Sentiment towards China was also worsened by data over the weekend showing the country’s services sector unexpectedly shrank in September, amid continued COVID-related disruptions. A recent resurgence in infections has also raised concerns over more lockdowns.
Focus this week is also on the 20th Congress of the Chinese Communist Party, which is expected to outline government policies for the next five years.
Broader Asian stock markets fell sharply on Monday, although trading volumes were muted due to holidays in Japan and South Korea.
Australia’s S&P/ASX 200 index fell 1.4%, with miners suffering heavy losses on the prospect of weakening demand in China. Philippines’ PSEi Composite index was the worst performer in Southeast Asia, down 1.1%.
India’s blue-chip Nifty 50 index fell 1.3%.
Regional stocks took a weak lead-in from Wall Street, which plummeted on Friday after stronger-than-expected U.S. jobs data gave the Federal Reserve little reason to soften its hawkish tone.
Focus this week is also on U.S. CPI inflation data for September, due on Thursday. The reading, which is expected to show that inflation remained hot through last month, will also factor into the Fed’s stance on interest rates.
Markets are pricing in an over 80% chance the central bank will raise interest rates by 75 basis points in November. Rising U.S. interest rates have been the biggest headwind to Asian markets this year, and are likely to keep markets depressed for the near-term.
Related Articles
Asian Stocks Slammed by U.S.-China Trade Jitters, Fed Woes
Argentina to tighten import controls to preserve dollars
Dollar climbs as U.S. jobs report is stronger than expected
Related Quotes
The 86-year-old investing legend has spoken. You may want to pay attention.
Stock splits have been all the rage this year as several prominent companies have decided to go down this path to lower their share prices and boost the demand among retail investors at a time when the broader market has been in sell-off mode, but even this move hasn't given them reprieve on the stock market. Palo Alto Networks (NASDAQ: PANW), for instance, announced a three-for-one stock split on Aug. 22. Shares of the cybersecurity specialist shot up following the announcement, but they have lost momentum since thanks to the Federal Reserve's hawkish nature that has been weighing on the stock market this year.
Chances are good you're ahead of 25% of your peers.
Using technical analysis of the charts of those stocks, and, when appropriate, recent actions and grades from TheStreet's Quant Ratings, we zero in on three names. While we will not be weighing in with fundamental analysis, we hope this piece will give investors interested in stocks on the way down a good starting point to do further homework on the names. Plug Power Inc. recently was downgraded to Sell with a D+ rating by TheStreet's Quant Ratings.
Currently, AT&T sports a high 7.4% dividend yield, which means the company will pay an estimated 7.4% of its stock price to shareholders each year. This number constantly fluctuates because it is calculated using the annual dividend payout divided by the stock price. The yield rises if the dividend goes up and the stock price stays the same.
Both companies have seen their share price fall, but that doesn't mean Apple or Amazon wouldn't be interested at the right number.
These diversified natural-resource giants have solid balance sheets, earnings, and dividends. All that they need is a rebound in commodity prices.
(Bloomberg) — Investors are girding for another volatile week in markets, with Asian stocks poised to open lower, major currencies vulnerable to dollar strength and bond yields elevated amid persistent inflationary pressure.Equity index futures for Japan, Hong Kong and Australia all fell more than 1%. In foreign exchange markets, traders are on guard for possible intervention to support the yen, which is near a 32-year low and within reach of the key 150 level versus the greenback. The pound ra
A new rally attempt is already struggling. Netflix and Tesla earnings loom. Shockwave is a stock to watch.
It's never a dull time analyzing Tesla's (NASDAQ: TSLA) stock. The innovative electric-car company always seems to have something interesting going on. In this video, we take a beginner-friendly walk-through of Tesla's second-quarter earnings transcript.
With the S&P 500 index firmly in bear market territory, down 25% year-to-date, investors are rightly nervous about what it means for stocks. As Warren Buffett once said, be fearful when others are greedy, and greedy when others are fearful. As long as investors have an appropriate investment horizon — 10 years is usually good — they should not fear bear markets, but look forward to them eagerly as a chance to buy good companies at discounted prices.
Third-quarter earnings from Bank of America, AT&T, Verizon, Goldman Sachs, Tesla, Netflix, IBM, Snap, Johnson Johnson, and more.
Amazon (NASDAQ: AMZN) isn't my favorite e-commerce stock (I prefer Shopify's mission to put the power of commerce back in the hands of smaller merchants). Nevertheless, I've been buying Amazon because I think it's too cheap to ignore — especially when considering the company's main breadwinner, public cloud computing pioneer AWS (Amazon Web Services).
Mortgage real estate investment trusts (REITs), which invest in debt, not property, have also been sold off as the Federal Reserve has raised interest rates. AGNC Investment (NASDAQ: AGNC) is a mortgage REIT that focuses primarily on investing in mortgage-backed securities (MBS) that are guaranteed by the U.S. government. AGNC Investment is probably the safest stock in the mortgage REIT space given that a potential recession would impact it less than most other mortgage REITs.
The stock market has been on a steady decline since January, and investors are feeling the pinch. The S&P 500, the Nasdaq, and the Dow Jones Industrial Average are all in bear market territory after falling more than 20% from their peaks earlier this year. With the right strategy, though, you can give your investments the best chance possible at surviving a bear market.
These stocks are built for the long haul, operating in industries with long-term growth opportunities.
(Bloomberg) — Federal Reserve Bank of St. Louis President James Bullard left open the possibility that the central bank would raise interest rates by 75 basis points at each of its next two meetings in November and December, while saying it was too soon to make that call.The Fed hiked rates by 75 basis points for the third straight meeting last month, to a target range of 3% to 3.25%. Officials projected 125 basis points of tightening for the rest of the year, suggesting a 75 basis-point move i
Investors searching for safe places to store some cash amid high inflation and volatile markets have options. In continuation of Yahoo Finance's series 'What to do in a bear market', we asked the experts where to park money safely, amid high inflation.
The research firm came up with a list of the best companies to own based on ones to which Morningstar analysts assign a wide moat.
Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) owns a massive stock portfolio with about 50 different investments and a total market value of more than $308 billion. Here are two Buffett stocks in particular that could be worth a closer look right now, and one that has limited upside potential and is best to avoid. Many financial sector stocks have been beaten down lately, and it's easy to understand why.