Asian equities decline as Micron causes losses in technology

On Thursday, the majority of Asian markets declined as technology companies followed the declines of their American counterparts in the wake of a disappointing outlook from Micron, a top chipmaker.

Long-term losses were seen in Chinese stocks as traders awaited additional developments in what may turn out to be a trade war with the West, and as disappointing industrial earnings data further soured sentiment towards the nation.

Regional markets followed Wall Street's mediocre lead, closing slightly higher in erratic trading. However, investors dumped chipmaking companies on Thursday as a result of Micron's mediocre sales estimate, which caused U.S. stock index futures to plunge.

Asian stock markets with a strong tech sector performed poorly on Thursday. The Nikkei 225 in Japan fell 1.2%, and the KOSPI in South Korea fell 0.5%.

Hong Kong's Hang Seng index fell 1.7% as a result of a combination of China fears and tech weakness.

Although Micron's quarterly earnings exceeded forecasts, investors looking for more were dissatisfied with the company's sales projection for the current quarter, especially as the stock was trading at a premium of more than 100% since last year. In trading after hours, Micron fell by about 8%.

In addition to raising some concerns about a demand boom powered by artificial intelligence, the lacklustre advice encouraged investors to cash in on their recent gains in tech companies.

China's Shanghai Composite and Shanghai Shenzhen CSI 300 indices declined after statistics indicated that the nation's industrial profit growth slowed in May.

Concerns that Beijing would need to implement additional stimulus measures in the upcoming months to support development were heightened by the report, which indicated that the largest economy in Asia was experiencing a slowdown in economic growth.

The Chinese Communist Party is expected to announce further economic support during its Third Plenum, a significant gathering of high-ranking officials, in July.

However, once the EU joined the US in placing import taxes on Chinese electric vehicles, attitude towards China remained slack in the face of a possible trade war with the West.

(Sources: investing.com, reuters.com)