TOKYO (Reuters) – Asian shares were subdued on Tuesday as investors’ rotation out of technology shares took the toll on some of the region’s tech heavyweights although hopes of a major tax cut in the United States underpinned risk sentiment.
MSCI’s broadest index of Asia-Pacific shares outside Japan were capped by the fall in the region’s technology shares, with Samsung Electronics losing 1.5 percent.
Japan - Nikkei - Percent - Shares - Tokyo
Japan’s Nikkei fell 0.4 percent, with semiconductor-related shares such as Tokyo Electron and Shin-etsu Chemical leading the losses.
On Wall Street, the benchmark S&P 500 finished lower on Monday after setting a record intraday high earlier as the technology sector , which has led Wall Street’s record-setting rally this year, tumbled 1.9 percent.
Tech - Index - Percent - Record - Peak
The tech index hit a five-week low and was down 4.3 percent from its record peak hit a week ago although it still remained the best performer of the year with year-to-date gains of 33 percent.
Investors switched to banks and retailers, which are seen benefitting from the expected corporate tax cuts.
President - Donald - Trump - Goal - Taxes
President Donald Trump’s goal of slashing taxes on businesses cleared an important hurdle at weekend when the U.S. Senate narrowly approved the Republican’s tax overhaul plan.
The S&P 500 banks index surged 2.3 percent while battered department store shares also jumped.
Shares - Valuations
“Some high-tech shares’ valuations are getting stretched. For the...
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