Asian markets, especially the Indian stock market, fell sharply on September 4, led by a large measure of technology and semiconductor shares.
The decline occurred after significant sales in relation to the shares of US technology companies and less optimistic US manufacturing figures, which added more fuel to the recession concerns around the world and affected global investors ‘confidence.
In Asia, the markets decreased, with Tokyo shedding more than 4 percent and Taipei losing 4 percent, with Seoul having 3 percent shaved off its value. 2 percent. Crashes in other markets, such as Hong Kong, with over 1 percent, Sydney and Singapore, as well as Shanghai and Bangkok, were not very encouraging.
Cognizant of this trend, Both Indian benchmark indices, BSE Sensex and NSE Nifty 50, opened in the red. The Bombay Stock Exchange’s Sensitive index, also known as the 30-share Sensex, declined by 450 points or 0. 59 %. On the other hand, the broader bellwether ‘Nifty 50 ‘fell over 174 points, down 0. 69 percent. Bear pressure was evident in the market as the trading session went on, and as such, bear pressure was evident in the market as the trading session went on.
worries that the US economy may be entering a period of contraction were compounded by actual figures of factory output in August, which, while showing some marginal progress, marked the fifth month of consecutive factory shrinkage.
What has remained positive for quite some time while weak jobs and economic growth data have been seen as positives for its implication of potential interest rate cuts by the Federal Reserve is now also looking like it is turning. Speculators now fear that deterioration might mean poor economic happenings in the future.
In Japan, one of the major players in chip testing equipment witnessed a plummet of 7. 7 percent, while the electronics and communications equipment maker Tokyo Electron sank by over 8 percent, and Sony lost about 3 percent. Taiwanese semiconductor TSMC plunged over 5 percent, and SK Hynix of South Korea was down by 8 percent, with Samsung going down by more than 3 percent.
These regional declines came after a volatile session on Wall Street, during which leading tech firms such as Nvidia, Apple, and Amazon came under severe selling pressure. Nvidia was down by 9. 5 percent, removing almost 280 Billion US dollars from its market capitalization.
Some of the issues that contributed to investors’ worries include fears that the market for AI chips was already heating up, meaning that the growth rate of the product might be slowing down due to unfavorable macroeconomic fundamentals. Adding more confusion, news came in that the US authorities had served Nvidia and other companies with subpoenas over antitrust concerns.
