Investing.com – Asian stock markets were broadly lower on Thursday, amid ongoing uncertainty over Greece’s debt crisis and after the Federal Reserve cut its growth forecast for the world’s largest economy.
During late Asian trade, Hong Kong's Hang Seng Index tumbled 2.8%, Australia’s ASX/200 Index fell 0.3%, while Japan’s Nikkei 225 Index was closed for a public holiday.
In an emergency meeting prior to the G-20 summit, French President Nicolas Sarkozy and German Chancellor Angela Merkel told Greek Prime Minister George Papandreou that Athens will surrender all European aid if it votes against the bailout package agreed upon last week, fuelling fears over a debt default.
The news weighed on shares in the financial sector, with the nation’s largest lender Industrial & Commercial Bank of China dropping 2.65%, China Construction Bank shares fell 2.4%, Hong Kong-listed shares of Europe’s largest lender HSBC Holdings slumped 3.3%.
Shares in property developers also came under pressure after data showed that home sales in Hong Kong slumped by half in October from a year earlier as buyers put off purchases. The value of transactions last month dropped 50% to HKD22.5 billion.
Hong Kong’s third largest property developer Hang Lung Properties saw shares fall 3.6%, rivals Sino Land Company tumbled 4.35%, while property investment firm New World Development saw shares slump 1.8%.
Exporters also contributed to losses after the Federal Reserve on Wednesday cut its growth forecasts for the U.S. economy for next year and predicted unemployment will average between 8.5% to 8.7% in the final quarter of 2012.
Shares of Li & Fung, which is the world’s biggest supplier of toys to major U.S. retailers, tumbled 5.3%, while shares in Esprit Holdings, which counts Europe as its largest market fell 3.1%.
In Australia, shares in retailers performed poorly after official data showed that retail sales rose 0.4% in September, falling short of expectations for a 0.5% gain.
Department store chain David Jones saw shares fell 1.55%, while Wesfarmers Limited saw shares slide add 1.5%.
The outlook for European stock markets, meanwhile, was downbeat. The EURO STOXX 50 futures pointed to a sharp fall of 2.5%, France’s CAC 40 futures tumbled 2.7%, the FTSE 100 futures declined 1.3%, while Germany's DAX futures slumped 2.2%.
Later in the day, the European Central Bank was to hold its first policy setting meeting chaired by new head, Mario Draghi. Meanwhile, the U.S. was to produce its weekly report on initial jobless claims as well as a report on service sector activity from the Institute of Supply Management.
During late Asian trade, Hong Kong's Hang Seng Index tumbled 2.8%, Australia’s ASX/200 Index fell 0.3%, while Japan’s Nikkei 225 Index was closed for a public holiday.
In an emergency meeting prior to the G-20 summit, French President Nicolas Sarkozy and German Chancellor Angela Merkel told Greek Prime Minister George Papandreou that Athens will surrender all European aid if it votes against the bailout package agreed upon last week, fuelling fears over a debt default.
The news weighed on shares in the financial sector, with the nation’s largest lender Industrial & Commercial Bank of China dropping 2.65%, China Construction Bank shares fell 2.4%, Hong Kong-listed shares of Europe’s largest lender HSBC Holdings slumped 3.3%.
Shares in property developers also came under pressure after data showed that home sales in Hong Kong slumped by half in October from a year earlier as buyers put off purchases. The value of transactions last month dropped 50% to HKD22.5 billion.
Hong Kong’s third largest property developer Hang Lung Properties saw shares fall 3.6%, rivals Sino Land Company tumbled 4.35%, while property investment firm New World Development saw shares slump 1.8%.
Exporters also contributed to losses after the Federal Reserve on Wednesday cut its growth forecasts for the U.S. economy for next year and predicted unemployment will average between 8.5% to 8.7% in the final quarter of 2012.
Shares of Li & Fung, which is the world’s biggest supplier of toys to major U.S. retailers, tumbled 5.3%, while shares in Esprit Holdings, which counts Europe as its largest market fell 3.1%.
In Australia, shares in retailers performed poorly after official data showed that retail sales rose 0.4% in September, falling short of expectations for a 0.5% gain.
Department store chain David Jones saw shares fell 1.55%, while Wesfarmers Limited saw shares slide add 1.5%.
The outlook for European stock markets, meanwhile, was downbeat. The EURO STOXX 50 futures pointed to a sharp fall of 2.5%, France’s CAC 40 futures tumbled 2.7%, the FTSE 100 futures declined 1.3%, while Germany's DAX futures slumped 2.2%.
Later in the day, the European Central Bank was to hold its first policy setting meeting chaired by new head, Mario Draghi. Meanwhile, the U.S. was to produce its weekly report on initial jobless claims as well as a report on service sector activity from the Institute of Supply Management.