The MSCI Asia ex-Japan index is currently down 1.6% on the week, China’s blue chip CSI300 index down 1.2%, the Hang Seng tech index down 0.6% and Japan’s Nikkei down 3%. Can they muster a rally strong enough on Friday to close the week in the green?
It would represent a remarkable turnaround, especially in Japan where currency- and rates-related volatility earlier in the week triggered some of the biggest stock market moves on record.
The U.S. tech shakeout that began on July 11 is losing steam. The broad S&P Information Technology index and ‘FANGS’ index of Big Tech shares both fell around 20% in the three weeks to Aug. 5 but have rebounded as much as 9% from these lows.
U.S. tech got a boost on Thursday from Meta Platforms’ earnings, and tech stocks in Asia could take their cue next week from Taiwanese chipmaker TSMC’s sales figures on Saturday.
TSMC, the world’s largest contract chipmaker and major supplier to Apple and Nvidia, on Saturday gives its latest monthly sales update. Sales have been falling in recent months – to T$207.9 billion in June from T$229.6 billion in May, which was down from T$236 billion in April.