World stocks fall after tech sell-off on Wall St

Bangkok Shares dropped Tuesday in Asia after selling of several Big Tech companies pulled US benchmarks lower. Paris, Frankfurt, Tokyo and Hong Kong declined while Shanghai advanced.

Despite reassurances from the Federal Reserve and a much weaker than expected US jobs reading last week, investors have refocused on the potential for surging prices to pressure central banks into tapering off on their massive stimulus and ultra-low interest rates, analysts said. "Investors seem to look past the jobs report and continue to place their focus on the inflation narrative with rising commodities prices and chip shortages in play," Jun Rong Yeap of IG said in a commentary.

Germany's DAX sank 2 per cent to 15,101.18 while the CAC 40 in Paris gave up 1.8 per cent to 6,272.36. Britain's FTSE 100 lost 2 per cent to 6,980.62. US futures also augured losses, with the contract for the S&P 500 down 0.6 per cent and that for the Dow industrials 0.4 per cent lower. China reported its strongest increase in producer prices since October 2017 last month, as supply constraints cascaded into manufacturing.

China's economy was the first to recover from the pandemic and the central bank, or People's Bank of China, has been adjusting policies to keep inflation in check. The producer price index jumped 6.8 per cent in April from a year earlier, up from a 4.4 per cent increase in March.