Investing.com - Asian stock markets were broadly lower during late Asian trade on Wednesday, as market sentiment was dampened after Federal Reserve Chairman gave a bleak assessment of the U.S. economy and failed to signal a fresh round of stimulus to boost growth.
Ongoing concerns over the health of the global economy further weighed on appetite for riskier assets.
During late Asian trade, Hong Kong's Hang Seng Index tumbled 1.4%, Australia’s ASX/200 Index fell 0.45%, while Japan’s Nikkei 225 Index shed 0.3%.
In his semi-annual testimony to the Senate Banking Committee on Tuesday, Fed Chair Bernanke reiterated that the central bank is prepared to act to boost growth in the U.S. economy, but he declined to specify details.
Bernanke said that the reduction in the unemployment rate in coming months was likely to be "frustratingly slow", while adding that the economic recovery remains “fragile”.
Investors were looking ahead to Bernanke's return to Capitol Hill later Wednesday to testify to the House Financial Services Committee.
The U.S. is a crucial market for the region's exporters. Worries about the U.S. economy have been dominating market sentiment in recent weeks, alongside the ongoing debt crisis in the euro zone and China's cooling growth.
In Tokyo, the Nikkei was weighed by losses in the semiconductor sector, after U.S. chip giant Intel slashed its annual sales forecast, citing a slowdown in demand among consumers in the U.S. and Europe.
Sumco tumbled 4.75%, Advantest slumped 1.2%, while Renesas Electronics declined 1.6%.
Shares in nuclear power providers were sharply lower amid fresh concerns over nuclear safety.
Hokuriku Electric Power plunged 21.3% after reports that a fault line was found right under its only nuclear power plant, raising concern the plant may need to be abandoned.
The Nikkei’s losses were limited after minutes of the Bank of Japan’s most recent policy meeting revealed that board members won't rule out further stimulus.
Meanwhile, in Hong Kong, the Hang Seng came under pressure by heavy losses in index heavyweight HSBC Holdings.
Europe’s largest lender lost 2.4% on reports that the bank’s London-based executive in charge of compliance will step down in response to an ongoing U.S. government investigation into money laundering.
Shares of HSBC command a 15% weighting on the Hong Kong benchmark.
Elsewhere, shares in Australia were higher after minutes the Reserve Bank of Australia’s most recent policy-setting meeting reflected a more positive tone on the Australian economy.
Shares in the financial sector were lower, as losses in miners weighed.
Rio Tinto declined 3.3%, BHP Billiton slumped 1.95%, while Newcrest Mining lost 3.5%.
The falls came despite BHP posting record quarterly iron ore production and guidance for a lift in Australian iron ore output of 5% in fiscal 2013.
Looking ahead, the outlook for European stock markets was lower, ahead of a second day of testimony by Federal Reserve Chairman Ben Bernanke.
The EURO STOXX 50 futures pointed to a loss of 0.4% at the open, France’s CAC 40 futures fell 0.25%, London’s FTSE 100 futures shed 0.25%, while Germany's DAX futures pointed to a droop of 0.3% at the open.
Later Wednesday, Bernanke was to testify in front of the Senate’s Financial Services Committee. In addition, the U.S. was to publish official data on building permits and housing starts.
Ongoing concerns over the health of the global economy further weighed on appetite for riskier assets.
During late Asian trade, Hong Kong's Hang Seng Index tumbled 1.4%, Australia’s ASX/200 Index fell 0.45%, while Japan’s Nikkei 225 Index shed 0.3%.
In his semi-annual testimony to the Senate Banking Committee on Tuesday, Fed Chair Bernanke reiterated that the central bank is prepared to act to boost growth in the U.S. economy, but he declined to specify details.
Bernanke said that the reduction in the unemployment rate in coming months was likely to be "frustratingly slow", while adding that the economic recovery remains “fragile”.
Investors were looking ahead to Bernanke's return to Capitol Hill later Wednesday to testify to the House Financial Services Committee.
The U.S. is a crucial market for the region's exporters. Worries about the U.S. economy have been dominating market sentiment in recent weeks, alongside the ongoing debt crisis in the euro zone and China's cooling growth.
In Tokyo, the Nikkei was weighed by losses in the semiconductor sector, after U.S. chip giant Intel slashed its annual sales forecast, citing a slowdown in demand among consumers in the U.S. and Europe.
Sumco tumbled 4.75%, Advantest slumped 1.2%, while Renesas Electronics declined 1.6%.
Shares in nuclear power providers were sharply lower amid fresh concerns over nuclear safety.
Hokuriku Electric Power plunged 21.3% after reports that a fault line was found right under its only nuclear power plant, raising concern the plant may need to be abandoned.
The Nikkei’s losses were limited after minutes of the Bank of Japan’s most recent policy meeting revealed that board members won't rule out further stimulus.
Meanwhile, in Hong Kong, the Hang Seng came under pressure by heavy losses in index heavyweight HSBC Holdings.
Europe’s largest lender lost 2.4% on reports that the bank’s London-based executive in charge of compliance will step down in response to an ongoing U.S. government investigation into money laundering.
Shares of HSBC command a 15% weighting on the Hong Kong benchmark.
Elsewhere, shares in Australia were higher after minutes the Reserve Bank of Australia’s most recent policy-setting meeting reflected a more positive tone on the Australian economy.
Shares in the financial sector were lower, as losses in miners weighed.
Rio Tinto declined 3.3%, BHP Billiton slumped 1.95%, while Newcrest Mining lost 3.5%.
The falls came despite BHP posting record quarterly iron ore production and guidance for a lift in Australian iron ore output of 5% in fiscal 2013.
Looking ahead, the outlook for European stock markets was lower, ahead of a second day of testimony by Federal Reserve Chairman Ben Bernanke.
The EURO STOXX 50 futures pointed to a loss of 0.4% at the open, France’s CAC 40 futures fell 0.25%, London’s FTSE 100 futures shed 0.25%, while Germany's DAX futures pointed to a droop of 0.3% at the open.
Later Wednesday, Bernanke was to testify in front of the Senate’s Financial Services Committee. In addition, the U.S. was to publish official data on building permits and housing starts.