By YURI KAGEYAMA
TOKYO (AP) — Asian stocks were mostly lower on Tuesday as losses in technology stocks weighed on global benchmarks.
Taiwan fell 4 percent after reopening after a holiday in the first trading session since the U.S. imposed new restrictions on exports of semiconductors and chip-making equipment to China. TMSC, the world’s largest chipmaker, fell 7.8%.
Japan’s Nikkei 225 was down 2.5% in morning trade at 26,439.97. South Korea’s Kospi lost 2.2 percent to 2,184.87. Both markets also reopened after the bank holiday on Monday.
Hong Kong’s Hang Seng fell 1.4 percent to 16,984.41.
The Shanghai Composite rose 0.4 percent to 2,986.11, while Australia’s S&P/ASX 200 rose 0.1 percent to 6,671.90.
“The markets of Japan and South Korea are recouping earlier losses in the global market, with their exposure to the technology sector driving more of the sell-off as reflected on Wall Street,” said Yeap Jun Rong, market strategist at IG in Singapore.
In a bit of encouraging news, Japan reopened to largely unrestricted tourism on Tuesday after more than two years of COVID-19 restrictions. Retained travel spending could help lift the world’s third-largest economy as it grapples with slowing global growth and inflation.
But tech stocks took a hit from the announcement of tighter controls on exports of semiconductors and chip-making equipment. The restrictions are intended to limit China’s ability to obtain advanced computing chips, develop and maintain supercomputers, and manufacture advanced semiconductors.
In China, tech stocks were hit by renewed selling after sharp losses on Monday. Chipmaker Naura Technology sank 10 percent and Hwatsing Technology fell 9.6 percent.
On Wall Street, Qualcomm Inc. lost 5.2% and Broadcom Inc. fell by 5%. Applied Materials lost 4.1%, while Lam Research Corp. decreased by 6.4%.
The benchmark S&P 500 fell 0.7% to close at 3,612.39 and extended its losing streak to a fourth day. The Dow Jones Industrial Average lost 0.3% to 29,202.88 and the Nasdaq composite fell 1% to 10,542.10. The Russell 2000 fell 0.6 percent to 1,691.92.
US bond trading was closed.
Wall Street is reeling from concerns about stubbornly hot inflation and the Federal Reserve’s plan to tame high prices by raising interest rates. The aim is to slow economic growth and cool both borrowing and spending to control inflation, but the plan risks sending the economy into recession.
Investors will potentially get a more detailed picture of the Fed’s thinking on Wednesday when the central bank releases minutes from its latest policy meeting. Then the Fed made another extremely large rate hike of three-quarters of a percentage point.
“No one is debating whether inflation is falling, it’s just the slope of the decline,” said David Kelly, chief global strategist at JPMorgan Funds. “The battle against inflation has been won, and the problem is that the battle against recession may be needlessly lost.”
Wall Street will also get important updates on inflation and more information on how it is affecting retail sales. The closely watched consumer price report will be released on Thursday, and the retail sales report is due on Friday.
The latest sales update may confirm that consumers are increasingly strained financially, or at least pulling back on spending. That could send a signal to the Fed, Kelly said.
“I just hope the Fed is watching these indicators,” he said. “That should tell them they’re a lot closer to both beating inflation and killing the economy than they think.”
This week features the latest round of corporate earnings reports, which could provide a clearer picture of how high prices are impacting revenue and earnings, and what’s in store for the rest of the year and even into 2023.
In energy trading, benchmark U.S. crude fell 38 cents to $90.75 a barrel in electronic trading on the New York Mercantile Exchange. US crude fell 1.6% on Monday. Brent crude, the international benchmark, lost 27 cents to $95.92 a barrel.
In foreign trade, the US dollar fell to 145.73 Japanese yen from 145.75 yen. The euro was worth 96.84 cents, down from 97.04 cents.
Yuri Kageyama is on Twitter https://twitter.com/yurikageyama