Asian stocks fell as a selloff in US chipmakers deepened and investors grew reluctant to trade ahead of the US midterm elections. The yuan weakened.
The MSCI Asia Pacific Index dropped almost 1%, with South Korea’s tech-heavy Kospi Index sliding almost 4%. The decline came after a gauge of US chipmakers extended a three-day rout, bringing its losses to 12%.
The Nasdaq 100 has now declined 10% from its peak, entering a technical correction. Japanese markets were closed for a holiday.
Chinese equities fell even after the central bank said it would encourage financial institutions to make greater use of stock-support tools and optimize their terms as authorities seek to bolster market stability.
The yuan ended its longest winning streak in three decades after the People’s Bank of China moved to cool its rally by asking banks to hold more foreign currencies in reserve.
The yuan weakened as much as 0.4% to 6.6728 per dollar, halting 13 straight days of gains, which was the longest streak since 1996.
