Asian Stock Markets Dive Amid Tech Retreat and Fed Uncertainty

On Tuesday, Asian stock markets from Tokyo to Taipei and Seoul witnessed significant declines as investors sought to secure gains from recent tech-driven rallies. Weak economic data from the United States compounded concerns, amidst divergent perspectives from Federal Reserve officials on a potential interest rate cut this December.

The U.S. dollar strengthened, setting new milestones against the yen and euro, while Australia's central bank withheld rate cuts amid inflation worries. Despite overnight rallies in U.S. tech shares driving up the S&P 500 and Nasdaq, futures suggested a downward trend.

Market anxiety grew due to contrasting views among Fed policymakers, especially with U.S. economic indicators affected by the government shutdown. Sentiment was further rattled by ongoing struggles in the U.S. manufacturing sector, prompting cautious market behavior.