Asian Stock Market: Sell-off in US techs weighs on Asian indices, oil struggles around $79.00

Investors dumped US technology stocks in anticipation of poor earnings and weak guidance.
Japanese stocks remained positive as BoJ Ueda reiterates the need for an ultra-dovish monetary policy.
South Korea’s KOSPI has witnessed an intense sell-off after mixed preliminary GDP data.

Sagar Dua FXStreet

Markets in the Asian domain are facing immense selling pressure as a sell-off in United States technology stocks recorded on Monday ahead of their quarterly earnings. This week, investors will remain busy amid quarterly results from Amazon, Google, Meta Platforms, and Microsoft. Investors are worried that the impact of higher interest rates from the Federal Reserve (Fed) will be visible in their corporate earnings and they may also impact the revenue guidance.

S&P500 futures are showing significant losses in the Asian session after a choppy Monday, portraying caution among market participants. The US Dollar Index (DXY) has found an intermediate cushion around 101.20 after a rigorous sell-off. The downside in the USD Index seems favored as investors have digested anticipation of consecutive 25 basis points (bps) interest rate hike from the Federal Reserve (Fed).

At the press time, Japan’s Nikkei 225 gained 0.23%, Shanghai dropped 0.35%, Hang Seng plummeted 1.54%, KOSPI dived 1.78%, and Nifty50 remains flat.

Japanese stocks have hogged the limelight as investors are anticipating a continuation of the expansionary monetary policy stance from Bank of Japan (BoJ) Governor Kazuo Ueda. While speaking in the Japanese parliament on Tuesday, new BoJ Governor Kazuo Ueda said, “Trend inflation remains below 2% but gradually accelerating, which is partly due to the effect of monetary easing.” He further added, “It takes very long for the impact of monetary policy steps to appear on economy, prices.

South Korea’s KOSPI has witnessed an intense sell-off after mixed preliminary Gross Domestic Product (GDP) data. The South Korean economy has grown by 0.3% in the first quarter of CY2023 while the street was anticipating a growth rate of 0.2%. On an annual basis, the GDP has declined to 0.8% from the estimates of 0.9%.

On the oil front, oil prices are attempting to overstep the immediate resistance of $79.00. The oil price rebounded on Monday as investors believe that a steady interest rate guidance from the Fed will recede recession fears.

Nikkei 225

Overview
Today last price	28699.24
Today Daily Change	0.00
Today Daily Change %	0.00
Today daily open	28699.24

Trends
Daily SMA20	28197.49
Daily SMA50	27805.92
Daily SMA100	27369.25
Daily SMA200	27525.59

Levels
Previous Daily High	28727.04
Previous Daily Low	28540.42
Previous Weekly High	28744.85
Previous Weekly Low	28385.28
Previous Monthly High	28630.69
Previous Monthly Low	26446.43
Daily Fibonacci 38.2%	28655.75
Daily Fibonacci 61.8%	28611.71
Daily Pivot Point S1	28584.09
Daily Pivot Point S2	28468.95
Daily Pivot Point S3	28397.47
Daily Pivot Point R1	28770.71
Daily Pivot Point R2	28842.19
Daily Pivot Point R3	28957.33

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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