Investing.com - Asian stock markets retreated on Wednesday, as a combination of ongoing concerns over the euro zone’s debt crisis and disappointing corporate earnings from technology giant Apple weighed on sentiment.
During late Asian trade, Hong Kong's Hang Seng Index fell 0.7%, Australia’s ASX/200 Index shed 0.2%, while Japan’s Nikkei 225 Index tumbled 1.4%.
Concerns over the euro zone’s debt crisis continued to weigh on appetite for riskier assets. The yield on Spanish 10-year bonds rose to a record 7.71% early Wednesday, well above the 7% threshold widely considered unsustainable in the long term, amid growing fears that Spain will need a full-scale bailout.
Meanwhile, fears over a Greek exit from the euro zone resurfaced, amid worries whether Athens can meet the conditions of its international bailout.
Asian technology firms sold off after Apple surprised the market with a rare earnings miss after Tuesday’s closing bell on Wall Street.
The iPad and iPhone maker reported earnings per share of USD9.32, badly missing expectations for earnings of YSD10.37 a share. Fiscal third quarter revenue came in at USD35 billion, below market expectations for revenue of USD37.2 billion.
In Tokyo, shares in exporters continued to come under pressure from a broadly stronger yen. The Japanese currency traded at an 11-year high against the euro and close to a two-month top against the U.S. dollar.
A stronger yen reduces the value of overseas income at Japanese companies when repatriated, dampening the outlook for export earnings.
Shares in Sharp plunged 10%, a day after reports the firm was likely to have suffered a JPY100 billion loss in the April-June quarter, significantly higher than whisper numbers for a loss of JPY76 billion.
Toshiba shares tumbled 7.3% after the company cut production of NAND flash-memory chips, fuelling concerns over future earning prospects.
Meanwhile, in Hong Kong, the Hang Seng was dragged down by weakness in property sector firms.
Sino Land shares slumped 2%, Hang Lung Properties lost 1.4%, while mainland developer Agile Property Holdings dropped 4.5%.
Index heavyweight HSBC Holdings slumped 0.6%, amid ongoing concerns over the euro zone debt crisis. Shares of Europe’s largest bank command a 15% weighting on the Hong Kong benchmark, making it the single largest constituent on the index.
Elsewhere, shares in Australia retreated amid concerns over the health of the global economy.
Mining heavyweights Rio Tinto and BHP Billiton declined 1.3% and 0.2% respectively.
Shares of Macquarie Group fell 1.8% after the investment bank reported a decline in business in the first quarter of the year.
Looking ahead, the outlook for European stock markets was flat to mildly lower.
The EURO STOXX 50 futures pointed to a loss of 0.1% at the open, France’s CAC 40 futures were flat, London’s FTSE 100 futures dipped 0.1%, while Germany's DAX futures pointed to a flat open.
Later in the day, the Ifo Institute for Economic Research was to release data on German business climate. The U.S. was to publish official data on new home sales, as well as a report on crude oil stockpiles.
During late Asian trade, Hong Kong's Hang Seng Index fell 0.7%, Australia’s ASX/200 Index shed 0.2%, while Japan’s Nikkei 225 Index tumbled 1.4%.
Concerns over the euro zone’s debt crisis continued to weigh on appetite for riskier assets. The yield on Spanish 10-year bonds rose to a record 7.71% early Wednesday, well above the 7% threshold widely considered unsustainable in the long term, amid growing fears that Spain will need a full-scale bailout.
Meanwhile, fears over a Greek exit from the euro zone resurfaced, amid worries whether Athens can meet the conditions of its international bailout.
Asian technology firms sold off after Apple surprised the market with a rare earnings miss after Tuesday’s closing bell on Wall Street.
The iPad and iPhone maker reported earnings per share of USD9.32, badly missing expectations for earnings of YSD10.37 a share. Fiscal third quarter revenue came in at USD35 billion, below market expectations for revenue of USD37.2 billion.
In Tokyo, shares in exporters continued to come under pressure from a broadly stronger yen. The Japanese currency traded at an 11-year high against the euro and close to a two-month top against the U.S. dollar.
A stronger yen reduces the value of overseas income at Japanese companies when repatriated, dampening the outlook for export earnings.
Shares in Sharp plunged 10%, a day after reports the firm was likely to have suffered a JPY100 billion loss in the April-June quarter, significantly higher than whisper numbers for a loss of JPY76 billion.
Toshiba shares tumbled 7.3% after the company cut production of NAND flash-memory chips, fuelling concerns over future earning prospects.
Meanwhile, in Hong Kong, the Hang Seng was dragged down by weakness in property sector firms.
Sino Land shares slumped 2%, Hang Lung Properties lost 1.4%, while mainland developer Agile Property Holdings dropped 4.5%.
Index heavyweight HSBC Holdings slumped 0.6%, amid ongoing concerns over the euro zone debt crisis. Shares of Europe’s largest bank command a 15% weighting on the Hong Kong benchmark, making it the single largest constituent on the index.
Elsewhere, shares in Australia retreated amid concerns over the health of the global economy.
Mining heavyweights Rio Tinto and BHP Billiton declined 1.3% and 0.2% respectively.
Shares of Macquarie Group fell 1.8% after the investment bank reported a decline in business in the first quarter of the year.
Looking ahead, the outlook for European stock markets was flat to mildly lower.
The EURO STOXX 50 futures pointed to a loss of 0.1% at the open, France’s CAC 40 futures were flat, London’s FTSE 100 futures dipped 0.1%, while Germany's DAX futures pointed to a flat open.
Later in the day, the Ifo Institute for Economic Research was to release data on German business climate. The U.S. was to publish official data on new home sales, as well as a report on crude oil stockpiles.