Investing.com - Asian stock markets dropped sharply on Wednesday, tracking heavy overnight losses on Wall Street as fears over rising borrowing costs for indebted euro zone nations prompted investors to shun riskier assets.
During late Asian trade, Hong Kong's Hang Seng Index tumbled 1.25%, Australia’s ASX/200 Index fell 1.1%, while Japan’s Nikkei 225 Index slumped 0.9%.
U.S. equities suffered their worst day of the year on Tuesday, while European markets plunged as concerns over Spanish borrowing costs intensified as the yield on 10-year government bonds ticked up to 5.98%, the highest since December, amid fears that the country will be the next in the euro zone to require a bailout.
The news came amid mounting fears over global growth prospects, especially in the U.S. and in China, the world’s two largest economies. A deeper slowdown in the U.S. and China would impair a global expansion that is already faltering because of the implementation of harsh austerity measures in Europe.
In Japan, the Nikkei fell for the seventh consecutive day, the longest losing streak since July 2009. The index dropped to a seven-week intraday low mid-way through the session.
The Nikkei rallied more than 19% in the first three months of the year, buoyed in large part by an unexpected easing announcement by the Bank of Japan in February, but the index has fallen more than 6% since the start of April.
Global financial service provider HSBC Holdings said in a report earlier that it remained ‘underweight’ on Japanese equities, saying it was skeptical that the BOJ had become serious about quantitative easing.
Shares in Sony tumbled 4.5% after reporting a record loss of JPY520 billion for the year ended March 31, more than double its projected net loss.
Shares in Sharp also came under heavy selling pressure, dropping 3.2% after reporting a record full-year loss of JPY380 billion.
Shares in Hong Kong slumped, with financials and real estate developers leading losses. Sino Land shares lost 4%, while index heavyweight HSBC Holdings declined 2.1%.
Trading volumes were light as market players were looking forward to Friday’s release of Chinese first quarter gross domestic product figures.
In Australia, losses for miners dragged the index lower for the fourth consecutive day. BHP Billiton shares fell 1.8% to hit a fresh six-month low, while Rio Tinto slumped 1.9%.
Looking ahead, European stock markets were set to open lower, as investors will eye an Italian bond sale later in the day.
The EURO STOXX 50 futures pointed to a loss of 0.25%, France’s CAC 40 futures dropped 0.4%, London’s FTSE 100 futures retreated 0.35%, while Germany's DAX futures pointed to a drop of 0.35% at the open.
Later in the day, the U.S. is to release government data on import prices as well as crude oil stockpiles and the federal budget balance. The Federal Reserve is also to publish its Beige Book.
During late Asian trade, Hong Kong's Hang Seng Index tumbled 1.25%, Australia’s ASX/200 Index fell 1.1%, while Japan’s Nikkei 225 Index slumped 0.9%.
U.S. equities suffered their worst day of the year on Tuesday, while European markets plunged as concerns over Spanish borrowing costs intensified as the yield on 10-year government bonds ticked up to 5.98%, the highest since December, amid fears that the country will be the next in the euro zone to require a bailout.
The news came amid mounting fears over global growth prospects, especially in the U.S. and in China, the world’s two largest economies. A deeper slowdown in the U.S. and China would impair a global expansion that is already faltering because of the implementation of harsh austerity measures in Europe.
In Japan, the Nikkei fell for the seventh consecutive day, the longest losing streak since July 2009. The index dropped to a seven-week intraday low mid-way through the session.
The Nikkei rallied more than 19% in the first three months of the year, buoyed in large part by an unexpected easing announcement by the Bank of Japan in February, but the index has fallen more than 6% since the start of April.
Global financial service provider HSBC Holdings said in a report earlier that it remained ‘underweight’ on Japanese equities, saying it was skeptical that the BOJ had become serious about quantitative easing.
Shares in Sony tumbled 4.5% after reporting a record loss of JPY520 billion for the year ended March 31, more than double its projected net loss.
Shares in Sharp also came under heavy selling pressure, dropping 3.2% after reporting a record full-year loss of JPY380 billion.
Shares in Hong Kong slumped, with financials and real estate developers leading losses. Sino Land shares lost 4%, while index heavyweight HSBC Holdings declined 2.1%.
Trading volumes were light as market players were looking forward to Friday’s release of Chinese first quarter gross domestic product figures.
In Australia, losses for miners dragged the index lower for the fourth consecutive day. BHP Billiton shares fell 1.8% to hit a fresh six-month low, while Rio Tinto slumped 1.9%.
Looking ahead, European stock markets were set to open lower, as investors will eye an Italian bond sale later in the day.
The EURO STOXX 50 futures pointed to a loss of 0.25%, France’s CAC 40 futures dropped 0.4%, London’s FTSE 100 futures retreated 0.35%, while Germany's DAX futures pointed to a drop of 0.35% at the open.
Later in the day, the U.S. is to release government data on import prices as well as crude oil stockpiles and the federal budget balance. The Federal Reserve is also to publish its Beige Book.