Investing.com – Asian equities slumped in morning trade on Wednesday amid concerns about tighter regulations on the technology industry as Facebook (NASDAQ:FB) continued to be embroiled in a data leak scandal while NVIDIA Corporation (NASDAQ:NVDA) suspended its self-driving tests after an Uber autonomous vehicle killed a woman.
Tesla (NASDAQ:TSLA) also made headlines as a fatal crash of a Tesla Model X in California last week has prompted a federal field investigation and sparked a big selloff in the companies’ stock.
Overnight, the Dow slumped 1.4% while the S&P 500 lost 1.7% and the Nasdaq dropped 2.9%.
The Shanghai Composite and the SZSE Component both fell 0.6% by 10:45PM ET (02:45GMT). China confirmed that North Korean leader Kim Jong Un met with president Xi Jinping, local media Xinhua reported Wednesday, adding that Kim said he would be willing to give up nuclear weapons and hold a summit with the U.S.
“The issue of denuclearization of the Korean Peninsula can be resolved, if South Korea and the United States respond to our efforts with goodwill, create an atmosphere of peace and stability while taking progressive and synchronous measures for the realization of peace,” said Kim during the four-day surprise visit to Beijing.
"We are willing to work together with DPRK comrades, remain true to our original aspiration and jointly move forward, to promote long-term healthy and stable development of China-DPRK relations, benefit the two countries and two peoples, and make new contribution to regional peace, stability and development," said Xi in response.
It was Kim’s first known visit outside the country. He is due to have a summit with his South Korean counterpart in April and U.S. President Trump by the end of May, according to reports earlier this year.
Meanwhile, reports that the U.S. is planning a crackdown on Chinese investments in technologies on violations of intellectual-property rights received some attention.
Hong Kong’s Hang Seng Index fell 1.0%. Chinese automaker BYD Co (HK:1211)’s stock fell 8.9% after the company reported its first-quarter profit falling sharply amid subsidy cuts. Index heavyweight Tencent Holdings Ltd (HK:0700)’s shares dropped 2.6% as Nomura cut its target price.
In Japan, the yen declined amid signs of an improving geopolitical situation with North Korea. Impact on equities seemed to be limited however, as the Nikkei lost 1.6% in morning trade.
Elsewhere, reports that South Korea has agreed to double to 50,000 the number of cars each U.S. automaker can sell in the Asian nation made headlines, as it marked Trump’s first revamp of a U.S. trade deal.