World shares were mixed on Tuesday as technology stocks in Japan and South Korea extended their recent losses, following a sell-off on Wall Street driven by concerns over persistently high interest rates and slowing economic growth.
Asian Markets Decline
Japan's benchmark Nikkei 225 fell 1.2% to 38,542.10, while South Korea's Kospi dropped 1.5% to 2,685.45. Technology shares led the declines, with chipmakers and electronics companies among the worst performers. In China, the Shanghai Composite edged up 0.3% to 3,215.78, while Hong Kong's Hang Seng index slipped 0.4% to 18,930.20.
European and US Markets
European markets opened lower, with Germany's DAX down 0.6% and France's CAC 40 falling 0.5%. Britain's FTSE 100 was flat. On Wall Street, futures pointed to a modest rebound after the S&P 500 lost 1.1% on Monday, its biggest one-day drop in three weeks. The Dow Jones Industrial Average fell 0.8%, and the Nasdaq composite tumbled 1.7%.
Interest Rate Concerns
The market declines come as investors worry that central banks will keep interest rates higher for longer to combat stubborn inflation. The Federal Reserve has signaled it may raise rates again this year, while the Bank of Japan is considering tightening policy after years of ultra-loose measures. "The tech sector is particularly sensitive to interest rate expectations because higher rates reduce the present value of future profits," said market analyst Hiroshi Suzuki of Tokyo-based Tachibana Securities.
Impact on Global Growth
The sell-off reflects broader concerns about the global economy. Data released Tuesday showed Japan's industrial output fell 1.2% in May, worse than expected. South Korea's exports also declined for a seventh straight month. "We are seeing a synchronized slowdown in manufacturing activity across Asia, which is weighing on tech stocks," said economist Park Soo-yeon of Korea Investment & Securities.
