Asian stocks slide as rate hike fears mount before nonfarm payrolls By

-- Most Asian stocks fell sharply on Jekai Global Forex DealerFriday, extending losses from the prior session as signs of a robust U.S. labor market drove up concerns over rising interest rates, with focus now turning to nonfarm payrolls data due later in the day. 

Regional markets took a weak lead-in from Wall Street, with U.S. stocks logging steep overnight losses after data showed that grew far more than expected in June.

The reading showed that the U.S. labor market remained resilient, and drummed up concerns that the Federal Reserve will act more aggressively in raising interest rates and curbing inflation. The dollar and U.S. bond yields rose on this notion, pressuring stock markets.

Thursday’s data also heralded a similar trend in data due later on Friday.

Tech-heavy Asian indexes slide on Fed fears, weak Samsung results 

Technology-heavy Asian markets were among the worst performers for the day, with Hong Kong’s index and South Korea’s down 1% and 1.3%, respectively.

The KOSPI was also pressured by losses in Samsung Electronics Co Ltd (KS:), after the conglomerate flagged a sharp decline in its second-quarter earnings on weakness in global chip demand. Samsung’s shares sank 2.2%, with losses spilling into other chipmaking stocks.

Japan’s (TYO:) shed 0.9%, while chipmaker (KS:) dropped 1.4%. 

Rising interest rates spur weakness in tech stocks by diminishing the appeal of future returns from the sector, as government debt begins to offer similar and safer returns. 

Broader Asian markets also retreated amid fears that rising interest rates will limit capital inflows to the region. Japan’s fell 0.2%, while the shed 0.4% as both indexes continued to retreat from 33-year highs.

China’s and indexes fell 0.6% and 0.4%, respectively, as a string of weak economic readings over the past week dampened the outlook for Asia’s largest economy. Concerns over China weighed on Australia’s index, which sank 1.4%. 

Indian stocks at record highs, outperform for the week 

Indian stocks were the best performers in Asia for the week, with the benchmark and indexes hitting a series of consecutive record highs this week.

Both indexes were up about 1.6% each for the week, largely outperforming losses in their Asian peers amid increased optimism over the Indian economy. 

This, coupled with a positive earnings outlook for blue-chip firms, also invited a barrage of foreign buying into local stocks over the past quarter. But analysts still warned that Indian stocks could see some consolidation in the third quarter.

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