The US tech sector sell-off on Friday and the UK election results that came out as appose to the market expectations weighted on today’s mixed trading session.
Meanwhile, currencies in the Asian’s trading session were mixed with the Japanese Yen strengthening against the US Dollar over the mixed industrial production and producer prices data and despite the weaker than expected machinery orders data.
However, the Australian Dollar eased against its US counterpart as the Australia market was closed on Monday for festivity.
US tech shares reversed their momentum to fall sharply on Friday’s trading session after investors raised questions that shares might be overvalued, especially after Goldman Sachs report that might support this question, thus weighting heavily on today’s Asian trading session.
Tech stocks have been on a streak in Asia, with some gaining nearly 70% year-to-date, driven by the optimism overseas as well as solid earnings that fueled the momentum trading.
In Japan, the Nikkei 225 fell by 0.52% or 104.68 points despite the Japanese electronics giant Toshiba Crop surging by more than 9 percent over the news that Western Digital Corp plans to raise its offer for Toshiba's prized semiconductor unit to $18 billion or more.
Meanwhile, the Japanese semiconductor manufacturing equipment makers and Apple suppliers led the declines hence dragging the Japanese stock market lower.
In China, Shanghai Composite index lost 0.6 per cent to 3,139.88 while China’s largest two developers were higher as China Evergrande had sold a 14.1 percent stake in smaller rival China Vanke for 29.2 billion Yuan ($4.3 billion) to Shenzhen Metro.
Shenzhen-listed shares in Vanke were up as much as 8.5 per cent, while Hong Kong-listed shares in Evergrande gained as much as 3.4 per cent.
The Australian stock was closed today for festivity.
Australian investors are awaiting the employment data which has been rising firmly over the past two months while experts believe it will weaken in May report.
Moreover, Consumer and business confidence surveys are also due this week, and Mr. Aird points to a noticeable divergence between sentiment as reported by the household and business sectors.
"We suspect that soft consumer sentiment and household spending is weighing on capital investment despite the surveys suggesting that both business confidence and conditions are buoyant," he said
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