Asian stocks drop as tech pullback, Nissan CEO’s arrest takes toll

Asian stocks drop as tech pullback, Nissan CEO’s arrest takes toll

Auto, electronics sectors weigh Nikkei; tech stocks sink Hang Seng

Asian stock markets fell in early trading Tuesday, following tech-led declines on Wall Street.

Japan’s Nikkei NIK, -1.09% was down 0.8%, with electronics and machinery stocks among the biggest decliners. Sony 6758, -3.09% was down 2.6% while Fanuc 6954, -2.13% and Hitachi 6501, -2.90% were off some 3%. But the auto sector was the most watched, following the arrest of Nissan CEO Carlos Ghosn on Monday. Alliance partners Nissan 7201, -5.45% and Mitsubishi 7211, -6.85% slid in early trading, with Nissan at almost-2½-year lows. But rival Toyota 7203, +1.59% benefited, climbing 2%.

Hong Kong’s Hang Seng Index HSI, -2.02% fell 1.3%, with Tencent 0700, -3.30% down 2.5% and smartphone-component firms AAC 2018, -3.66% and Sunny Optical 2382, -2.38% off some 2%. Xiaomi 1810, +8.38% jumped 5% after its third-quarter earnings report

In mainland China, the Shanghai Composite SHCOMP, -2.13% was down 1.2% and the smaller-cap Shenzhen Composite 399106, -2.72% dropped 1.4%. Among large caps, real estate was off 1.3% after yesterday’s sharp bounce. Financials, which also were strong Monday, pulled back 0.9%.

A report about another round of production cuts for iPhones weighed on Apple AAPL, -1.89% suppliers in Asia. Taiwan’s Taiex Y9999, -0.86% fell 0.5% as product assembler Hon Hai 2317, -3.27% dropped 2.7% to hit fresh five-year lows and Taiwan Semiconductor 2330, -1.80% declined 1.3%. Korean memory-chip maker SK Hynix 000660, -3.30% slid another 2.7% and Samsung Electronics 005930, -1.95% lost 1.7% as the Kospi SEU, -0.86% dropped 0.6%.

Australia’s benchmark index XJO, -0.38% was down 0.8%, and New Zealand NZ50GR, -0.83% and Singapore STI, -1.24% posted losses as well.

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