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European and Asia technology stocks slide after huge losses on Wall Street

James Cook
Shares in Chinese smartphone maker Xiaomi dropped 8.9pc on Thursday - © 2018 Bloomberg Finance LP

Asian and European technology stocks suffered significant losses in trading on Thursday as a global equities sell-off intensified.

Shares in Chinese smartphone maker Xiaomi dropped 8.9pc and fellow Chinese technology business Tencent saw a drop of 7.4pc.

Taiwanese manufacturing companies used by US tech giants to manufacture their products also saw a drop in their share price. Hon Hai Precision Industry, the manufacturing company known as Foxconn, saw a drop of 6.9pc in its share price.

Shares in Taiwan Semiconductor Manufacturing, which supplies chips to Apple and other firms, dropped 6.2pc.

The sell-off of Asian technology businesses follows a sharp fall in US markets on Wednesday.

Snapchat’s parent company Snap fell 5.9pc to a new all-time low and Amazon, Apple, Alphabet and Facebook all dropped by between 4.6pc and 6.5pc.

The sell-off comes as traders react to the recent jump in US interest rates and pull out of equities. Rising government bond yields have made them more attractive to investors, and US ­10-year Treasuries hit a seven-year high of 3.26pc yesterday.

In London, the FTSE 100 plunged into correction territory with a fall of more than 10pc from the index’s 52-week high. The index initially dropped 1.5pc on Thursday morning but later held to a 1.2pc drop.

Technology stocks listed in London saw drops between 0.5pc and 5pc. Shares in defence technology company QinetiQ  dropped 1.62pc on Thursday.

Donald Trump responded to the stock market slump in the US on Wednesday by criticising the Federal Reserve;s "ridiculous" rate rises. He said the decline was “a correction that we’ve been waiting for a long time.”

The global equity sell-off also saw technology founders including Amazon chief executive Jeff Bezos and Facebook chief executive Mark Zuckerberg suffer drops in their fortunes.

Mr Bezos’ was hardest hit by the sell-off and saw his wealth drop by $9.1bn (£6.8bn) on Wednesday following a 6.1pc drop in Amazon’s share price.