Stocks skidded across Europe and Asia on Friday, with strong selling in tech stocks sending Hong Kong’s benchmark index down 3.7%.
The German DAX fell 0.9% to 13,090.91 and the CAC40 in Paris lost 0.6% to 6,205.73. Britain’s FTSE 100 fell 0.6% to 7,029.81. The S&P 500 future fell 0.8% while that of the Dow Jones Industrial Average fell 0.2%.
Shares fell in Tokyo even as the government approved a huge stimulus spending to help the world’s third-largest economy cope with inflation. As expected, the Bank of Japan concluded a policy meeting by keeping its ultra-loose monetary policy unchanged even though he forecast a rise in inflation.
The Nikkei 225 index fell 0.9% to 27,105.20.
The stimulus package includes government funding of about 29 trillion yen ($200 billion) in grants and other measures to help ease the cost burden of rising utility tariffs and food prices. It is also designed to help bolster support for Prime Minister Fumio Kishida, whose popularity has been hit by a scandal over links between the ruling Liberal Democratic Party and the United Kingdom-based Unification Church. South Korea.
In Hong Kong, the Hang Seng lost nearly 565 points to 14,863.06, while the Shanghai Composite lost 2.3% to 2,915.93. News of new coronavirus outbreaks in China added to concerns, as tech stocks tumbled after big tech companies sold off on Wall Street.
Hong Kong-listed shares of Chinese e-commerce giant Alibaba fell 4.8%, while JD.com lost 6.7%. The Hong Kong Tech Index, which includes 30 major Hong Kong-listed tech companies, fell 5.6%.
Elsewhere in Asia, the Kospi in Seoul fell 0.8% to 2,268.40 and Australia’s S&P/ASX 200 fell 0.9% to 6,785.70. In India, the Sensex rose 0.3%, while the Bangkok SET edged up 0.2%.
Wall Street had a mixed session on Thursday, as carnage among tech companies offset gains in other sectors. The S&P 500 fell 0.6%, with about 44% of stocks in the benchmark losing ground. The tech-heavy Nasdaq fell 1.6%, while the Dow Jones Industrial Average rose 0.6%. The Russell 2000 Index added 0.1%.
Facebook’s parent company, Meta platforms, fell 24.6% for the biggest drop in the S&P 500 after posting a second consecutive quarter of falling revenue amid falling ad sales and fierce competition from TikTok.
It joined other tech and communications stocks, such as parent company Google, Alphabetand Microsoft, reporting mediocre results and worrying forecasts for advertising demand. Alphabet fell 2.9% and Microsoft 2%.
Amazon fell 19% in after-hours trading after the retail giant released a sales estimate for the final quarter of the year that fell well below analysts’ forecasts. The stock fell 4.1% in regular trading before the release of its latest quarterly results.
Construction equipment maker Caterpillar jumped 7.7% after easily beating analysts’ third-quarter profit forecast. This big gain helped boost the Dow Jones by 30 companies.
Wall Street has more earnings to review on Friday, including Exxon Mobil, Chevron and Charter Communications.
Excluding the Nasdaq, the major indexes are on pace with weekly gains. And the S&P 500 remains solidly on track to end October in the green.
Markets received encouraging economic news on Thursday as the government announced the The US economy has returned to growth last quarter, up 2.6%. This marks a turnaround after the economy contracted in the first half of the year.
The economy has been under pressure from stubbornly hot inflation and the Federal Reserve’s efforts to raise interest rates to cool prices. The central bank is trying to slow economic growth through rate hikes, but the strategy risks going too far and causing a recession.
S&P Dow Jones Indices announced Thursday that insurer Arch Capital Group will replace Twitter in the S&P 500 index before markets open Tuesday ahead of Elon Musk’s acquisition of Twitter, a the transaction is expected to close on Friday.
In other trading, the dollar rose to 147.71 Japanese yen from 146.31 yen Thursday night. The euro slipped to 99.61 cents from 99.66 cents.
Benchmark U.S. crude oil fell $1.16 to $87.92 a barrel in electronic trading on the New York Mercantile Exchange. It gained $1.17 on Thursday to $89.08 a barrel. Brent crude oil fell 86 cents to $94.18 a barrel.
Associated Press writer Mari Yamaguchi in Tokyo contributed.