Investing.com – Asian stock markets tumbled on Thursday, after the Federal Reserve announced fresh stimulus measures to bolster the U.S. economy, while noting “significant downside risks” to the economic forecast.
During late Asian trade, Hong Kong's Hang Seng Index plunged 4.2%, Australia’s ASX/200 Index dropped 2.52%, while Japan’s Nikkei 225 Index tumbled 2.07%.
In a highly anticipated move, the Fed said it would buy USD400 billion worth of long-term Treasury bonds by June 2012, while selling an equal amount of short-term debt over the same period, in a move known as ‘Operation Twist’.
However, the Fed warned of “significant downside risks to the economic outlook, including strains in global financial markets.”
Asian equities added to heavy losses after a preliminary reading of the HSBC China purchasing managers' index fell to a two-month low of 49.4 in September, remaining in contraction territory for the third consecutive month.
Shares in the financial sector performed poorly, tracking sharp losses in their U.S. counterparts after ratings agency Moody’s cut its credit ratings on Bank of America, Citigroup and Wells Fargo on Wednesday.
Japan’s largest lender Mitsubishi UFJ Financial Group dropped 1.75%, while rival Sumitomo Mitsui Financial Group fell 1.8%.
Japanese exporters also contributed to losses, amid the downbeat global economic outlook. Sony shares declined 1.8%, while automakers Honda and Nissan tumbled 3.9% and 2.9% respectively.
Shares in telecom firm Softbank plunged 12.3% after a report the carrier will lose its position as the exclusive provider of Apple’s iPhone in Japan.
Elsewhere, in Hong Kong, shares in raw material producers led losses, as commodity prices were dragged down by a broadly stronger U.S. dollar.
Oil and gas giant PetroChina saw shares fall 3.8%, shares in China’s largest gold miner Zijin Mining tumbled 6.9%, while Aluminum Corporation of China saw shares plunge 7.95%.
Meanwhile, the outlook for European stock markets was sharply lower. The EURO STOXX 50 futures pointed to a drop of 2.8%, France’s CAC 40 futures tumbled 2.5%, the FTSE 100 futures dropped 2.7%, while Germany's DAX futures pointed to a loss of 2.9%.
Later in the day, the euro zone was to publish preliminary data on activity in the manufacturing and service sectors, as well as official data on industrial new orders. Also Thursday, the U.S. was to publish its weekly report in initial jobless claims.
During late Asian trade, Hong Kong's Hang Seng Index plunged 4.2%, Australia’s ASX/200 Index dropped 2.52%, while Japan’s Nikkei 225 Index tumbled 2.07%.
In a highly anticipated move, the Fed said it would buy USD400 billion worth of long-term Treasury bonds by June 2012, while selling an equal amount of short-term debt over the same period, in a move known as ‘Operation Twist’.
However, the Fed warned of “significant downside risks to the economic outlook, including strains in global financial markets.”
Asian equities added to heavy losses after a preliminary reading of the HSBC China purchasing managers' index fell to a two-month low of 49.4 in September, remaining in contraction territory for the third consecutive month.
Shares in the financial sector performed poorly, tracking sharp losses in their U.S. counterparts after ratings agency Moody’s cut its credit ratings on Bank of America, Citigroup and Wells Fargo on Wednesday.
Japan’s largest lender Mitsubishi UFJ Financial Group dropped 1.75%, while rival Sumitomo Mitsui Financial Group fell 1.8%.
Japanese exporters also contributed to losses, amid the downbeat global economic outlook. Sony shares declined 1.8%, while automakers Honda and Nissan tumbled 3.9% and 2.9% respectively.
Shares in telecom firm Softbank plunged 12.3% after a report the carrier will lose its position as the exclusive provider of Apple’s iPhone in Japan.
Elsewhere, in Hong Kong, shares in raw material producers led losses, as commodity prices were dragged down by a broadly stronger U.S. dollar.
Oil and gas giant PetroChina saw shares fall 3.8%, shares in China’s largest gold miner Zijin Mining tumbled 6.9%, while Aluminum Corporation of China saw shares plunge 7.95%.
Meanwhile, the outlook for European stock markets was sharply lower. The EURO STOXX 50 futures pointed to a drop of 2.8%, France’s CAC 40 futures tumbled 2.5%, the FTSE 100 futures dropped 2.7%, while Germany's DAX futures pointed to a loss of 2.9%.
Later in the day, the euro zone was to publish preliminary data on activity in the manufacturing and service sectors, as well as official data on industrial new orders. Also Thursday, the U.S. was to publish its weekly report in initial jobless claims.