Negative for IndiaAI assessmentReported
Asian stocks slide as US chip sell-off deepens
- Likely effect
- May weigh on Indian markets
- When
- Short-term
- Confidence
- Medium
- Reported by
- 1 publisher
In simple words
What happened?
Asian stocks fell as a sell-off in US chipmakers continued. South Korea’s Kospi dropped almost 3%, while US stock futures gained.
Why does it matter to India?
Weaker global risk appetite could weigh on Indian equities, including technology shares.
May weigh on Indian markets. Small impact.
What could it affect?
- Chip stocks
- Asian stocks
- IT shares
- Foreign flows
USA to India
How it could reach India
- Step 1US chip stocks fall
- Step 2Global risk appetite weakens
- Step 3Foreign flows may soften
- Step 4Indian equities
Sectors that may feel it
Potentially negative
IT
A global technology sell-off may weigh on sentiment toward Indian IT shares, although this decline is centred on US chipmakers.
What happened
The MSCI Asia Pacific gauge fell 0.4%, with South Korea’s Kospi down almost 3%. A US chipmakers’ gauge extended a three-day decline to 12%, and the Nasdaq 100 was 10% below its peak; US stock futures gained. Japan was closed for a holiday.
Why it matters
A deeper global tech sell-off could dampen risk appetite and put pressure on Indian equities. Indian technology shares may also face weaker sentiment, though the sell-off is centred on US chipmakers.
Global impact
Asian equities fell, led by South Korea, as the US chipmakers’ gauge extended its decline and the Nasdaq 100 entered a technical correction. US stock futures gained, pointing to a more mixed signal in early trading.
How the story broke
More in this story: Global tech sell-off
- Kospi falls as Nasdaq weakness hits Asian tech Negative, score 31
- Bitcoin faces a weak October as US stocks fall Negative, score 21
- Stocks fall as Intel plunges and Binance is hacked Negative, score 34
Related news
- Sensex and Nifty rise as oil prices fall Positive, score 56
- Rupee slips against the US dollar Mixed, score 43
- US stocks end mixed as AI worries persist Mixed, score 39
- Bank of Japan signals a possible December rate hike Negative, score 39
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