Asian Technology Stocks Fall as US Inflation Data Sparks Rotation Out of Big Tech and Yen Volatility

The global tech market took a hit on Friday as Asian technology stocks followed Wall Street’s lead in experiencing a downturn. The decline was attributed to slowing US inflation data, which prompted a rotation out of Big Tech companies.

The yen’s volatility added to the uncertainty in the market, with Japanese tech-heavy markets like South Korea and Japan taking a hit. However, equities in Australia and China saw a rally, with Chinese property developers experiencing significant gains.

The Japanese currency’s fluctuations had traders on edge, leading to speculation that authorities may have intervened in the market to stabilize the situation. The Bank of Japan’s rate checks further fueled speculation of possible intervention.

Meanwhile, Treasuries saw a moderation in their rally, as the prospect of lower US interest rates caused fluctuations in the market. The US dollar remained steady after a significant drop, while Australian and New Zealand government bonds saw an increase.

In light of the CPI data, Fed Bank of Chicago President Austan Goolsbee described the report as “excellent” and suggested that the central bank may be on track to reach its 2% goal. This fueled speculation of a September rate cut.

Analysts are closely watching economic reports from China, Japan, and India, with reports on trade, industrial output, and inflation expected to shed light on the market’s future direction.

Overall, the market remains uncertain, with key events like Citigroup, JPMorgan, and Wells Fargo’s earnings set to provide further insight into the state of the economy. As global markets navigate these turbulent times, investors are advised to exercise caution and stay informed on market developments.