The Nikkei is getting smashed

(Chris McGrath / Getty Images)
  • Japan’s benchmark Nikkei 225 stock index has fallen by more than 3% in morning trade, following a sharp selloff on US markets.
  • Falls were led by Japan Display, a key Apple supplier, which slumped by more than 8% after downgrading forward guidance.

Another nasty selloff in US stocks overnight has dragged Asian markets lower this morning.

And as was the case following the last heavy US falls in late October, stocks in Japan are copping the brunt of it.

Australia’s ASX200 hasn’t been spared. A short time ago, it was down more than 1.5% in midday trade.

But it’s far rockier on Japan’s NIKKEI index, which opened at 11am AEDT and immediately slumped more than 3%:

Japan’s Nikkei 225 stock index weekly chart (Markets Insider).

Japan’s TOPIX index was also down by almost 3%. Falls in Tokyo were led by Japan Display, a key Apple supplier.

Share in Japan Display slumped by more than 8% in morning trade, after the company reported an operating loss and downgraded its earnings outlook.

It follows the tech-led US selloff overnight, which saw Apple shares fall by more than 5% as the company revised its guidance around iPhone demand.

In line with the risk-off sentiment across Asia, benchmark US 10-year yields have since fallen by four basis points to 3.15%. US bond markets were closed overnight for Veteran’s Day.

Markets were also impacted overnight by another round of strength in the US dollar index, which rose to a 17-month high.

“A stronger US dollar usually acts as a wrecking ball through Asian equities, and as risk-off sentiment persists stocks in Asia should topple heads over heels,” said Stephen Innes, APAC head of trading at OANDA.

All eyes will now be on Chinese markets, which opened at 12:30pm AEDT.