Tech Worries Weigh Down Global Stocks

Stocks fell overseas Wednesday, pulled lower chiefly by the technology and telecommunications sectors.

U.S. markets were closed for the Independence Day holiday. They will reopen today.

In Japan, the 225-issue Nikkei stock average declined 1.5%, weighed down by selling in blue-chip technology shares, including Sony, Matsushita Electric Industrial, Hitachi, TDK and NEC.

Traders in Japan said investors were concerned that slumping stock prices and corporate earnings in the United States bode ill for Japanese tech companies, whose own profits hinge on the health of overseas markets.

In currency trading, the yen remained under selling pressure amid Japan’s worst economic slowdown in decades.

In Taiwan, the market posted its lowest close for the year, falling amid widespread concern over the bankruptcy of a debt-ridden local securities firm. The weighted price index of the Taiwan Stock Exchange finished down 2.2%.

European stock markets closed lower, pulled down by the tech and telecommunications stocks.

Telecom stocks in particular stumbled after British equipment supplier Marconi suspended its shares. Marconi later announced it expects profit to drop 15% this year and will cut up to 8,000 jobs.

Investors in Europe also were dismayed by dim prospects for lower interest rates. European Central Bank President Wim Duisenberg indicated that the bank is unlikely to cut rates when it meets today.

Britain’s FTSE-100 and France’s CAC 40 index each fell 0.6%, while Germany’s DAX index lost 0.8%.

Still, other international markets were able to gain ground Wednesday.

In Hong Kong, shares closed slightly higher, supported by a sharp rise by Pacific Century CyberWorks after the telecom firm announced plans to lay off 340 employees. The blue-chip Hang Seng Index inched up 0.17%.