Financial markets in Asia did not fare too well at the start of the new business week. Investors are growing nervous about the upcoming announcement of current US inflation data. The fresh numbers may indicate a further rise in US rates, which will make investments in dollar assets attractive.
On Monday, Asian shares were still catching up with Friday’s surprise that came from the US labor market. The latter showed that it is still very tight, implying persistently high inflation in the US. And thus the Federal Reserve’s willingness to further increase its interest rates.
Tech giants saw declines
Chinese stocks did not do well either, especially technology. Shares of tech giants Alibaba and Tencent fell the most. Alibaba wrote off over three percent, Tencent about 2.5 percent. Along with them, chip manufacturers were also losing. Investors reacted to restrictions on chip exports from the United States to China.
America wants to prevent the import of chips to China
The US does not want to allow chips made anywhere in the world with the help of American equipment to go to China. The goal of the US is to slow down the technological and military development of the most populous country in the world.