Asian Stocks Slide as Chip Selloff Deepens - Asia Market Wrap

Asian stocks fell as the selloff in US semiconductor shares deepened and investors turned cautious ahead of the US midterm elections. The yuan weakened after China’s central bank moved to slow its rally. The MSCI Asia Pacific Index dropped 1.2%, led by South Korea’s technology-heavy Kospi, which slid almost 4%. The decline followed a further rout in US chipmakers, with a semiconductor gauge extending its losing streak to three sessions and bringing its cumulative losses to 12%. The Nasdaq 100 also fell further, taking its decline to 10% from its peak and pushing the index into a technical correction. Chinese equities weakened despite fresh efforts by the central bank to support markets. The People’s Bank of China said it would encourage financial institutions to make greater use of stock-support tools and optimise their terms as authorities seek to stabilise sentiment. Japanese markets were closed for a holiday. The yuan ended its longest winning streak in three decades after the PBOC sought to cool its appreciation by requiring banks to hold more foreign currencies in reserve. The currency fell as much as 0.4% to 6.6728 per dollar, snapping 13 consecutive days of gains — its longe