Asian shares subdued as tech blues offset U.S. tax cut hopes

Asian shares were subdued on Tuesday as investors` rotation out of technology shares took the toll on some of the region`s tech heavyweights although hopes of a major tax cut in the United States underpinned risk sentiment.

MSCI`s broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> were capped by the fall in the region`s technology shares, with Samsung Electronics <005930.KS> losing 1.5 percent.

Japan`s Nikkei <.N225> fell 0.4 percent, with semiconductor-related shares such as Tokyo Electron <8035.T> and Shin-etsu Chemical <4063.T> leading the losses.

On Wall Street, the benchmark S&P 500 <.SPX> finished lower on Monday after setting a record intraday high earlier as the technology sector <.SPLRCT>, which has led Wall Street`s record-setting rally this year, tumbled 1.9 percent.

The tech index hit a five-week low and was down 4.3 percent from its record peak hit a week ago although it still remained the best performer of the year with year-to-date gains of 33 percent.

Investors switched to banks and retailers, which are seen benefiting from the expected corporate tax cuts.

President Donald Trump`s goal of slashing taxes on businesses cleared an important hurdle at weekend when the U.S. Senate narrowly approved the Republican`s tax overhaul plan.

The S&P 500 banks index <.SPXBK> surged 2.3 percent while battered department store shares also jumped.

"Some high-tech shares` valuations are getting stretched. For the entire market to keep rallying, we needed a sector rotation," said Nobuyuki Kashihara, head of research at Asset Management One.

"On the whole, the world`s shares are supported by a synchronized growth in the global economy," he added.

The tax cut hopes supported the U.S. dollar in the currency market, particularly against the yen.

The dollar fetched 112.48 yen , after a brief foray to 113.09 on Monday, which was its highest level in more than two weeks.=>

The euro was steadier at $1.1866, sitting comfortably in its familiar trading range between $1.1810-1.1960, as the common currency was helped by hopes the two major German parties will form a grand coalition.=>

The British pound stood at $1.3475, off last week`s two-month high of $1.3550, after European Commission President Jean-Claude Juncker and British Prime Minister Theresa May failed to reach an agreement on a divorce deal.=d4>

Bitcoin was traded at $11,571, hovering near its record high of $11,800 set on Sunday.=btsp>

Oil steadied after falling more than 1 percent on Monday on profit-taking as the market eyed signs of rising U.S. production.

But their prices remained close to recent two-year highs thanks to last week`s decision by OPEC and other producers to extend output cuts.

U.S. West Texas Intermediate futures traded at $57.50 per barrel, little changed in early Asian trade.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)