Hong Kong (CNN Business)Markets in Asia Pacific fell Wednesday, tracking the big tech sell-off on Wall Street that dragged the Nasdaq into correction territory.
SoftBank was one of the morning’s biggest losers as its stock briefly sank more than 7% in Tokyo. By the afternoon it had pared losses but was still down 3.3% — enough to extend a five-day losing streak. Investors have been unnerved about the Japanese tech conglomerate since the Financial Times and the Wall Street Journal reported that it had been making huge and risky bets on tech stocks.So far, SoftBank has plunged about 11% this week, wiping about $12 billion off its market value.Every major index in Asia Pacific was lower, though many were able to claw heavier losses from the morning.China’s Shanghai Composite (SHCOMP) dropped 1.5%, and Japan’s Nikkei 225 (N225) fell 1%. Hong Kong’s Hang Seng Index (HSI) — which this week added big tech stocks Alibaba and Xiaomi to its list of components — lost 0.9%. South Korea’s Kospi (KOSPI) shed 0.8%. Australia’s S&P/ASX 200 was the region’s worst performer, dropping 2.2%. Read MoreThe retreat followed yet another bad day on Wall Street. The Nasdaq (COMP) closed down 4.1% Tuesday and fell into correction territory — defined as a 10% drop from its most recent peak. The S&P 500 (SPX), the broadest measure of the US stock market, closed down 2.8%, and the Dow (INDU) ended down 2.3%, or 632 points.Futures rebounded after hours. Nasdaq futures were up roughly 1%, while Dow and S&P futures rose 0.1% and 0.3%, respectively.”A third consecutive day of stock sales may appear alarming, but the rise that preceded it caused an equal amount of alarm (over a longer period) to those of us who struggled to mentally buy into the stock rally,” wrote Robert Carnell, regional head of research in Asia-Pacific for ING.Tesla shares suffer their worst day ever“There is room for this to go further, if stocks are to more plausibly reflect the macro and pandemic reality,” he said, though he added that there’s no “panic in evidence” — meaning the sell-off is unlikely to be followed by hasty policy reactions from central banks and governments. “When you juice markets this hard, you have to imagine the occasional pip will stick in your throat,” Carnell added.