Rate-sensitive tech stocks fall in Japan, Hong Kong and Australia

Japanese stocks rallied on Wednesday to fall more than 1% as rate-sensitive tech stocks dragged down expectations of a faster-than-expected cut cycle after Jerome Powell was re-appointed as Reserve chairman federal government.

The benchmark Nikkei 225 fell 1.3% to 29,292 after lunch on Wednesday. Markets in Japan were closed for holidays on Tuesday. In the United States, the tech-rich Nasdaq index extended its losses to close 0.5% lower overnight.

Tech conglomerate Rakuten fell 3.9%, electronics maker Fujitsu lost 3.2%, semiconductor equipment maker Advantest lost 4.3%, and online games company Nexon lost 5% and was among the top 10 intraday losers in the benchmark.

Tech stocks down in Asia-Pacific

The Topix-17 IT & Services and Topix-17 Electric Appliances & PRE Instruments indexes were the biggest losers on Wednesday, down 1.7% and 2.1% respectively.

Meanwhile, energy and auto stocks gained on Wednesday to limit losses in Tokyo. Mitsubishi Motors was the best winner in the benchmark, up 4.3%.

Tech stocks in Hong Kong and Australia showed a similar trend. Hong Kong’s Hang Seng TECH Index and Australian S & P / ASX All Technology Index fell 0.6% and 0.5%, respectively.

Gold stocks falling

Australian gold stocks fell 1.3% on Wednesday as bullion prices fell below $ 1,800 on the strength of the dollar.

Overall, the Australian benchmark S & P / ASX 200 was largely unchanged as energy gains offset mining and technology losses.

Hong Kong’s benchmark Hang Seng saw losses in real estate companies combined with weakness in tech stocks push the index down 0.1% at lunch break on Wednesday. Alibaba Health Information Technology and Xiaomi were the worst performers in Hong Kong, down around 7% each.

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade a CFD.
You can still benefit if the market moves in your favor, or suffer a loss if it moves against you. However, with traditional trading, you enter into a contract to exchange legal ownership of individual stocks or commodities for cash, and you own it until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the total value of the CFD trade to open a position. But with traditional trading, you buy the assets for the full amount. In the UK there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs come with overnight costs to hold trades (unless you use 1 to 1 leverage), which makes them more suitable for short-term trading opportunities. Stocks and commodities are more normally bought and held longer. You could also pay a commission or brokerage fees when buying and selling assets directly and you would need a place to store them safely.

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