Asian shares fall as technology shares pull benchmarks lower

TOKYO (AP) — Asian shares were mostly lower on Tuesday as losses in technology-related shares weighed on global benchmarks.

Taiwan dropped 4.4% after reopening from a holiday in the first trading session since the U.S. imposed new limits on exports of semiconductors and chip-making equipment to China. TMSC, the world’s biggest chipmaker, plunged 8.3%.

Japan's Nikkei 225 declined 2.6% to 26,401.25. South Korea's Kospi lost 1.8% to 2,192.07. Both markets also were reopening after holidays on Monday.

Hong Kong's Hang Seng dropped 2.2% to 16,830.73.

The Shanghai Composite gained 0.2% to 2,979.79, while Australia’s S&P/ASX 200 lost 0.3% to 6,645.00.

“Japan and South Korean markets are catching up to previous global market losses, with their exposure to the tech sector spurring a greater extent of the sell-off as mirrored in Wall Street,” Yeap Jun Rong, a market strategist at IG in Singapore, said in a report.

In a bit of encouraging news, Japan reopened to generally unrestricted tourism on Tuesday after more than two years of COVID-19 restrictions. Pent-up travel spending could help lift the world's third largest economy as it grapples with slowing global growth and inflation.

But technology stocks have taken a hit from the announcement of tighter export controls on semiconductors and chip manufacturing equipment. The restrictions aim to limit China’s ability to get advanced computing chips, develop and maintain supercomputers, and make advanced semiconductors.

In China, technology shares were hit by renewed selling after steep losses on Monday. Chip equipment maker Naura Technology sank 10% and Hwatsing Technology dropped 12.2%.

Japan's Sony Group lost 4.1% while Renasas shed 5.7%.

On Wall Street on Monday, Qualcomm Inc. lost 5.2% and Broadcom Inc. dropped 5%....