by Ambar Warrick
Investing.com – Asian stocks fell on Monday as concerns about US restrictions on Chinese semiconductor imports were exacerbated by a report that Apple (NASDAQ:) was planning to drop Chinese chips, while fears of a sharp interest rate hike by the Federal Reserve I also weighed it down. .
The Chinese company’s index fell 0.4%, while the index lost 0.1%. The Japanese financial daily Nikkei reported on Monday that the iPhone manufacturer is using memory chips from China’s Yangtze Memory Technologies in its products.
The report comes just a week after the White House unveiled stricter limits on chip supplies to China, as it moves to put more economic pressure on Beijing by stifling its chip-making ambitions.
Shares of Chinese technology companies fell sharply last week on concerns about the economic fallout from the move, as well as fears that Beijing could retaliate with its own sanctions, further hurting global trade.
Hong Kong shares also fell sharply, due to their exposure to Chinese companies listed in the United States. The index fell more than 1% with the big tech companies Baidu (HK :), Alibaba (HK 🙂 and Tencent (HK 🙂 are posting huge losses.
Which is also likely to be affected by US actions, it fell 1.4%. Taiwan Semiconductor Manufacturing Corp (TW :), the world’s largest chip maker, fell 6% last week.
Sentiment toward China was further affected by President Xi Jinping saying that the country has severely disrupted economic activity this year.
But promises of more market-friendly policies helped limit losses in Chinese stocks.
Technology stocks have come under pressure from concerns about rising interest rates. The higher than expected US inflation last week has seen the markets now that the Fed will raise interest rates by 75 basis points next month.
The broader Asian markets pulled back on this notion, given that higher interest rates weighed on earnings expectations for most sectors. High interest rates in the US have weighed on Asian stocks this year by tightening liquidity conditions and pushing up yields on low-risk debt.
Japan’s index fell 1.4%, while India’s index fell 0.2%.
Australian shares fell as the weak outlook for China affected the… BHP Group Ltd (ASX:) and Rio Tinto Ltd (ASX:) are down about 3% each, with focus also turning to their production reports for the September quarter, due this week.
The index fell 1.5 percent.