Equities lower As JP Stocks Plunge, Weak US Data & Tech Earnings

Asian markets tumbled amid a selloff in Japanese stocks, a global tech rout, and concerns over the US economy. The MSCI Asia Pacific Index dropped as much as 2.8%, with significant declines in the regionals large Semiconductor names while Japanese Financials dropped on poor earnings results from Daiwa. Tech-heavy markets in South Korea and Taiwan fell around 3%. Investor sentiment was dampened by disappointing earnings from US tech giants and data showing weakness in the US economy, including rising unemployment claims and shrinking manufacturing.

• Japanese stocks experienced a sharp decline, with the Topix Index falling over 10% from its July peak, entering a technical correction. Exporters were hit hard by the yen's rally to a four-month high against the dollar, while financial stocks retreated on concerns of excessive recent gains and poor results. The BoJ's unexpected rate hike and hawkish stance contributed to the selloff, resulting in the Topix falling 4.20% and down 7.40% over two days, the Nikkei is 4.50% lower and down 6.90% the past two session.
• Taiwan equities are down 3% and is now testing recent lows after falling about 10% from the July highs. South Korean equities are faring slightly worse with the KOSPI & KOSDAQ both down 3.30%
• Australian equities have dropped 2.30% today, with the Big Four Banks the worst performing. New Zealand equities have largely escaped the global sell-off with gains in health care stocks somewhat offsetting weakness in other sectors, the NZX 50 is 0.60% lower.
• In the EM space Singapore's Straits Times down is 1.20% lower, Malaysia's KLCI is 0.80% lower, the Philippines PSEi is 1.14% lower, Indonesian JCI is 0.16%.