Fundamental Comment

Technology stocks push Asian equity indices to the brink


Asian stocks witnessed a very sharp drop on Wednesday, as technology stocks led the sell-off to close the negative zones to follow the footsteps of US stocks on Wall Street,

Dow Jones Industrial Average shaved 1.4%, Nasdaq Composite sagged 2.93% and the S&P 500 plummeted 1.73%, where technology shares led the decline on the back of the Facebook latest scandal.

The pressure continued on technology companies to increase security considerations for users’ data and to modify and enforce their usage policies after the leaking of 50 million US users on Facebook for a British company for political uses.

In Japan, Nikkei 225 index fell 1.34% to 21031.31 points.

Shanghai's Shanghai index fell 1.4% to 3,122.29 points and Hong Kong's Hang Seng fell 2.01% to 30171.6 points, while Australia's S&P/ASX 200 index shed 0.73% to 5,789.46 points.

On the other hand, the US dollar rose yesterday against the major currencies, but reduced its gains before the end of the session to start trading today slightly higher before the release of U.S. GDP data later in today's session.

The US economy is expected to grow by 2.7% in the fourth quarter of 2017 from the previous reading of 2.5%. 

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