Asia trades lower after Wall Street sinks on tech, trade worries

  • Asian shares slid in early Tuesday trade, with Japan leading losses in the region.
  • U.S. markets came under pressure from a drop in tech stocks and trade-related worries.
  • All three major U.S. stock indexes closed in correction territory.
  • The dollar slipped against the yen for the third consecutive session.

Asian shares slid in early Tuesday trade, with Japan leading losses in the region after markets stateside came under pressure from the drop in tech stocks and trade-related worries.

Japan's Nikkei 225 fell 1.41 percent amid broad-based losses. The broader Topix slid 1.04 percent, with just the electric and gas sector index trading higher in the morning.

Over in South Korea, the Kospi slid 0.82 percent.

Symbol
Name
Price
 
Change
%Change
NIKKEI
---
HSI
---
ASX 200
---
SHANGHAI
---
KOSPI
---
CNBC 100
---

Down Under, the S&P/ASX 200 shed 0.57 percent, with the heavily weighted financials subindex losing 0.9 percent in the morning as most other sectors traded lower. Gold producers climbed as gold prices held onto overnight gains.

The weaker investor sentiment in Asia came after major U.S. stock indexes moved into correction territory in the overnight session.

On Monday, the Dow Jones industrial average fell 1.9 percent. Meanwhile, the S&P 500 sank 2.23 percent — re-entering correction territory and closing below its 200-day moving average for the first time since June 2016.

The Nasdaq composite lost 2.74 percent, closing in correction territory for the first time.

Tech, trade worries weigh 

Shares of U.S. tech giants, including Facebook, Netflix and Google parent Alphabet, all declined overnight in the first trading session of the month, having first sold off in March.

E-commerce giant Amazon, one of the best performers over the past year, declined after U.S. President Donald Trump criticized the company in a series of tweets.

Investors also digested China's announcement that it is imposing tariffs on 128 kinds of U.S. products, beginning Monday, in response to U.S. duties on steel and aluminum imports unveiled last month. Beijing said in March that those products had an import value of $3 billion in 2017.

Analysts saw the move as largely measured, although there was concern that retaliation from U.S. trading partners would be negative for global economic growth.

In corporate news, Australian oil and gas company Santos announced Tuesday that it had received a $10.4 billion takeover proposal from Harbour Energy, Reuters said.

Meanwhile, South Korea's SK Innovation was down 2.34 percent in early trade. Reuters reported that the company said on Monday it intended to sell shares in its SK Lubricants unit as part of a planned initial public offering.

The dollar index, which tracks the U.S. currency against six peers, stood at 90.065 by 8:04 a.m. HK/SIN.

Against the yen, the dollar extended losses, slipping below the 106 level to trade at 105.73. Monday marked the third consecutive session the greenback slid against the safe-haven Japanese currency.

What's on tap

Here's the economic calendar for Tuesday (all times in HK/SIN):

  • 1:00 p.m.: India Nikkei manufacturing PMI
  • 4:30 p.m.: Hong Kong retail sales

The Reserve Bank of Australia is due to announce its interest rates decision, with most expecting the central bank to hold the cash rate steady.

— CNBC's Fred Imbert contributed to this report.