Asia report: Markets lower as tech stocks decline

Most markets in Asia finished lower on Friday, as sentiment took a dive following a decline in technology stocks on Wall Street overnight.

In Japan, the Nikkei 225 was off 0.56% at 22,694.50, as the yen strengthened 0.33% against the dollar to last trade at JPY 109.34.

Banks and technology plays led Tokyo’s benchmark lower, although consumer stocks did end the session in the green.

On the mainland, the Shanghai Composite slid 1.36% to 3,067.13, and the smaller, technology-heavy Shenzhen Composite was off 0.94% at 1,751.40.

South Korea’s Kospi was down 0.77% at 2,451.58, while the Hang Seng Index in Hong Kong lost 1.76% to settle at 30,958.21.

Carmakers, steel producers and technology names were the losers of the day in Seoul, with Samsung Electronics falling 1.88%.

Investors in the region had their focus on both declines in emerging markets overnight, and a decline in bond yields in the US on Friday.

“While there are no obvious catalysts for an apparent broadening of emerging market - albeit excluding Asia - pressures in recent days, it is valid to speculate that the European Central Bank's mid-week signalling that the conditions for ending its quantitative easing bond buying programme look to have fallen into place, is relevant,” noted National Australia Bank’s head of foreign exchange strategy Ray Attrill.

Earlier in the week, the ECB had said that the organisation was confident that strength in the eurozone was leading inflation towards its target.

That would lead the central bank to look at winding down its asset purchase programme, which it said it would discuss next week.

Traders were also looking to the Federal Reserve’s policy meeting scheduled for next week.

Oil prices were lower, with Brent crude last down 0.86% at $76.66 per barrel, and West Texas Intermediate slipping 0.43% to $65.67.

In Australia, the S&P/ASX 200 slipped 0.2% to 6,045.20, while across the Tasman Sea, New Zealand’s S&P/NZX 50 rose 0.4% to hit another fresh record close of 8,938.45.

Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.58% at AUD 1.3192, and the Kiwi retreating 0.08% to NZD 1.4240.