Investing.com – Asian stock markets tumbled on Thursday, tracking steep overnight losses from Wall Street as investors dumped riskier assets after a sharp spike in Italian borrowing costs fuelled concerns that the euro zone’s debt crisis is worsening.
During late Asian trade, Hong Kong's Hang Seng Index plummeted 5%, Australia’s ASX/200 Index sank 2.35%, while Japan’s Nikkei 225 Index tumbled 2.9%.
Market sentiment was rattled after the yield on Italian 10-year government bonds soared to a euro-lifetime high of 7.48% on Wednesday, above the 7% level which prompted Greece, Ireland, and Portugal to seek international bailouts.
Shares in the financial sector came under broad selling pressure in Japan. The nation’s largest lender Mitsubishi UFJ Financial Group saw shares slump 2.65%, while rivals Sumitomo Mitsui Financial Group dropped 4.7%.
Investment bank Nomura Holdings saw shares fall 3.15% after ratings agency Moody’s put its ratings on review for possible downgrade, citing the firm’s exposure to European sovereign debt. The brokerage has lost nearly 53% of its value since the beginning of the year.
Japanese exporters traded lower amid the uncertain global outlook. Consumer electronics giant Sony tumbled 4.7%, digital camera maker Canon fell 2.3%, while chipmaker Elpida Memory plunged 10%, amid ongoing concerns over a slowdown in demand for memory chips.
Meanwhile, shares in Olympus plummeted 17.1% after the Tokyo Prosecutor’s Office said it was investigating whether Olympus broke securities laws. The stock has plunged nearly 58% in the past week, amid growing fears the company could be delisted from the Tokyo Stock Exchange.
Elsewhere, shares in Hong Kong came under additional pressure after government data showed that China’s trade surplus widened less-than-expected in October, as export growth slowed significantly.
Shares of Li & Fung, which is the world’s biggest supplier of toys to major U.S. retailers, tumbled 6.75%, while shares in Esprit Holdings, which counts Europe as its largest market sank 7.4%.
Lenders also contributed to losses, as Hong Kong-listed shares of Europe’s largest lender HSBC Holdings plunged 8.8%. China’s largest lender Industrial and Commercial Bank of China fell 8.3%, while China Construction Bank shares slumped 5.1%.
Meanwhile, the outlook for European stock markets was downbeat. The EURO STOXX 50 futures pointed to a loss of 1.85%, France’s CAC 40 futures dropped 1.95%, the FTSE 100 futures slumped 1.8% higher, while Germany's DAX futures tumbled 1.95%.
Later in the day, Italy was to auction EUR5 billion in one-year Treasury bills. In addition, the U.S. was to release official data on jobless claims as well as a report on the trade balance.
During late Asian trade, Hong Kong's Hang Seng Index plummeted 5%, Australia’s ASX/200 Index sank 2.35%, while Japan’s Nikkei 225 Index tumbled 2.9%.
Market sentiment was rattled after the yield on Italian 10-year government bonds soared to a euro-lifetime high of 7.48% on Wednesday, above the 7% level which prompted Greece, Ireland, and Portugal to seek international bailouts.
Shares in the financial sector came under broad selling pressure in Japan. The nation’s largest lender Mitsubishi UFJ Financial Group saw shares slump 2.65%, while rivals Sumitomo Mitsui Financial Group dropped 4.7%.
Investment bank Nomura Holdings saw shares fall 3.15% after ratings agency Moody’s put its ratings on review for possible downgrade, citing the firm’s exposure to European sovereign debt. The brokerage has lost nearly 53% of its value since the beginning of the year.
Japanese exporters traded lower amid the uncertain global outlook. Consumer electronics giant Sony tumbled 4.7%, digital camera maker Canon fell 2.3%, while chipmaker Elpida Memory plunged 10%, amid ongoing concerns over a slowdown in demand for memory chips.
Meanwhile, shares in Olympus plummeted 17.1% after the Tokyo Prosecutor’s Office said it was investigating whether Olympus broke securities laws. The stock has plunged nearly 58% in the past week, amid growing fears the company could be delisted from the Tokyo Stock Exchange.
Elsewhere, shares in Hong Kong came under additional pressure after government data showed that China’s trade surplus widened less-than-expected in October, as export growth slowed significantly.
Shares of Li & Fung, which is the world’s biggest supplier of toys to major U.S. retailers, tumbled 6.75%, while shares in Esprit Holdings, which counts Europe as its largest market sank 7.4%.
Lenders also contributed to losses, as Hong Kong-listed shares of Europe’s largest lender HSBC Holdings plunged 8.8%. China’s largest lender Industrial and Commercial Bank of China fell 8.3%, while China Construction Bank shares slumped 5.1%.
Meanwhile, the outlook for European stock markets was downbeat. The EURO STOXX 50 futures pointed to a loss of 1.85%, France’s CAC 40 futures dropped 1.95%, the FTSE 100 futures slumped 1.8% higher, while Germany's DAX futures tumbled 1.95%.
Later in the day, Italy was to auction EUR5 billion in one-year Treasury bills. In addition, the U.S. was to release official data on jobless claims as well as a report on the trade balance.