. Tech Stocks Rise Despite Global Economic Slowdown - 04 May

Tech Stocks Rise Despite Global Economic Slowdown – 04 May

Tech Stocks Rise Despite Global Economic Slowdown – 04 May

04 May 2023

Asian Stocks Mostly Decline Amid Economic Slowdown Concerns, Tech Stocks Boosted by Strong US Earnings.


Most Asian stocks experienced a decline on Wednesday due to ongoing concerns about a global economic slowdown. However, technology-heavy indexes received support from better-than-expected earnings results from major U.S. companies. Hong Kong’s Hang Seng index was an exception, rising on the back of gains in U.S.-exposed technology stocks such as Alibaba and Baidu. While Wall Street closed lower on Tuesday, after-hours earnings reports from Microsoft and Alphabet surpassed market expectations, providing some relief to mega-cap technology companies facing rising interest rates and high inflation.

Tech Stocks and Asian Indexes

Technology-heavy Asian indexes saw relatively smaller losses compared to the broader market. South Korea’s KOSPI traded flat, while Taiwan’s Weighted index experienced a 0.3% decline. India’s BSE Sensex 30 and Nifty 50 indexes started the day with little change, benefiting from the strength of heavyweight technology stocks. However, the overall sentiment in broader Asian markets remained negative due to growing fears of a U.S. recession, which weighed on risk-driven markets. Soft results from First Republic Bank also revived concerns of a banking crisis, as it reported a significant drop in deposit levels.

Upcoming Focus and Southeast Asian Markets

The market focus now turns to U.S. GDP data scheduled for release on Thursday, expected to show a slowdown in first-quarter growth. Southeast Asian markets, known for their higher risk profile, recorded the most significant declines, with Thailand’s SET Index and the Philippine Composite down 1.1% and 0.8% respectively.

China’s Economic Recovery Concerns

In China, the Shanghai Shenzhen CSI 300 and Shanghai Composite indexes fell 0.2% and 0.3% respectively. Worries over an uneven economic recovery in the country persisted. Attention now shifts to data on Chinese industrial profits, set to be released on Thursday, which will provide insights into the state of the manufacturing sector that has struggled to rebound despite the easing of anti-COVID measures.


Asian stocks, for the most part, experienced a decline due to concerns about an economic slowdown. However, technology-heavy indexes were buoyed by strong earnings reports from major U.S. companies. Ongoing fears of a U.S. recession and a potential banking crisis added to the negative sentiment in the region. China’s economic recovery remained a concern, while upcoming data on Chinese industrial profits and the U.S.