Asian Shares Subdued As Tech Blues Offset U.S. Tax Cut Hopes

www.oann.com | 10/23/2017 | Staff
TimHyuga (Posted by) Level 3
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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