* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Trading in U.S. stock options raises eyebrows
* Delay in vaccine testing hurts sentiment
* Oil futures fall sharply on worries about energy demand
By Stanley White and Jessica DiNapoli
TOKYO/NEW YORK, Sept 9 (Reuters) - Asian shares fell on Wednesday and oil prices hit lows not seen since June after a rout of technology shares sank Wall Street for a third consecutive day and a major drugmaker delayed testing of a coronavirus vaccine.
Japan's Nikkei .N225 skidded by 1.69%.
Sentiment for equities and other risky assets also took a hit after AstraZeneca Plc AZN.L paused a late-stage trial of one of the leading COVID-19 vaccine candidates due to an unexplained illness in a study participant. yields fell further in Asia as investors sought the safety of holding government debt. Risk aversion also pushed the yen to a one-week high against the dollar.
A sell-off in high-flying U.S. technology shares, fueled partly by concerns about excess purchases of call options, has increased the risk of a larger correction across other markets.
"The performance of Wall Street is going to leave a heavy residue, and most noteworthy is how the tech names dropped down quite aggressively. Investors will take a close note of that," said Tom Piotrowski, a markets analyst at Australian broker CommSec.
"The dramatic fall in oil prices in the last day is being seen as a proxy for global growth expectations. That 7.6% fall will certainly be resonating."
Among U.S. technology names, electric-car maker Tesla TSLA.O plunged 21.06% on Tuesday, its biggest daily percentage drop, after it was excluded from a group of companies being added to the S&P 500.
SoftBank Group Corp 9984.T shares fell 5% on Wednesday due to worries about the Japanese conglomerate's trading in call options on U.S. tech stocks.
SoftBank has fallen 12% since sources told Reuters and other media late last week that it built up stakes in major U.S. tech companies worth around $4 billion and bought a similar amount of call options for the underlying shares. who sold the call options to SoftBank would have to hedge their exposure by buying the underlying shares, which likely contributed to the Nasdaq .IXIC and S&P 500 .SPX reaching record highs only days ago, some traders say.
U.S. 10-year Treasury yields US10YT=RR fell to 0.6722%, while the yield curve between two-year and 10-year notes US2US10=TWEB flattened slightly, highlighting declining appetite for risk.
The British pound GBP=D3 fell to six-week lows against both the dollar and the euro.
Escalating concerns over Britain leaving the European Union without a trade agreement are weighing on sterling. dollar index =USD against a basket of six major currencies stood near a four-week high as Wall Street's sell-off and renewed fears about Brexit boosted safe-harbour demand for the greenback. futures extended their sharp decline in Asian trading to the lowest levels since June due to concern about weak global energy demand and excess supply.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Global assets
http://tmsnrt.rs/2jvdmXl Global currencies vs. dollar
http://tmsnrt.rs/2egbfVh Emerging markets
http://tmsnrt.rs/2ihRugV MSCI All Country Wolrd Index Market Cap
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.