Australian shares fell on Thursday, dragged by technology and mining stocks, as a surging inflationary environment globally raised worries about its impact on corporate earnings and growth in major economies.

The benchmark S&P/ASX 200 index snapped a four-day winning streak to drop 1.95% to 7,042.9 by 0039 GMT.

In other key markets, Japan’s Nikkei shed 2.3% to 26,296.84 and S&P 500 E-minis futures were down 0.5%.

Global equities slumped after Britain and Canada’s high inflation numbers, and major US retailers’ slashed earnings forecasts brought to the fore the impact of surging prices and a threat of a recession.

Domestic technology stocks emerged as the top drag, shedding over 3%, with ASX-listed shares of Block Inc and accounting software firm Xero Ltd falling 2.8% and 4.2%, respectively.

Export-reliant mining stocks slipped over 2% after iron ore prices tumbled on fears that policies announced would not be enough to revive the COVID-19-battered Chinese economy.

Australia shares rise on miners, energy boost; Brambles sinks

Heavyweight miners BHP Group, Rio Tinto and Fortescue Metals Group slid between 2.2% and 2.8%.

Financials lost 1.9%, hitting their lowest in a week.

All of the so-called “Big Four” banks declined. Energy stocks too lost over 2% as oil prices fell after data indicated US refiners ramped up output.

Santos Ltd and Woodside Petroleum Ltd lost 1.6% and 2%, respectively.

Bucking the trend, however, gold stocks inched 0.5% higher on firmer bullion prices. In New Zealand, the benchmark S&P/NZX 50 index fell 1.5% to 11,086.86 points by 0039 GMT.