Asian stocks fell for a second day in a row on Thursday as weak earnings from tech megacaps deepened a sell-off on Wall Street, while US sanctions against Russia and possible new export controls to China revived geopolitical concerns.
Oil prices rose by 3% after the US imposed sanctions on major Russian firms Rosneft and Lukoil over the war in Ukraine.
MSCI’s broadest index of Asia-Pacific shares outside Japan was last down 0.4%, while Japan’s Nikkei 225 sank 1.5%.
Chinese shares fell as much as 1.1% after sources said the White House was considering a plan to limit a range of software-driven exports to China in retaliation for Beijing’s latest round of rare earth export restrictions.
“With no new macro data to bolster sentiment, investors are leaning defensive as Trump’s visit to Asia (next week) raises geopolitical jitters,” said Charu Chanana, chief investment strategist at Saxo Bank in Singapore.
“News of US restrictions on software exports to China hit tech sentiment right where it hurts the most, and renewed sanctions on Russia are a reminder that geopolitical risks aren’t going away either.”
Global stock markets fall from record highs as corporate earnings season kicks off and investors take profits. While the performance or outlook of megacaps has disappointed investors, most of the firms that have reported so far have beaten analysts’ estimates.
South Korean shares fell 0.7% amid a broad decline in tech hardware makers. The Bank of Korea kept interest rates unchanged, which was expected by analysts polled by Reuters, reports SEEbiz.
Brent crude was last up 2.9% at $64.41 a barrel after US President Donald Trump on Wednesday imposed Ukraine-related sanctions targeting Rosneft and Lukoil for the first time in his second term. The move came on the same day that EU countries approved the 19th package of sanctions against Moscow, which included a ban on imports of Russian liquefied natural gas.
