Investing.com - Asian stock markets were mostly lower on Thursday, after ratings agency Standard & Poor's downgraded Spain's sovereign-debt rating to one level above junk, underscoring fears over the euro zone’s ongoing debt crisis.
Lingering concerns over the health of the global economy and its impact on corporate earnings further dampened appetite for riskier assets.
During late Asian trade, Hong Kong's Hang Seng Index eased up 0.2%, Australia’s ASX/200 Index ended down 0.2%, while Japan’s Nikkei 225 Index shed 0.6%.
Standard & Poor’s cut Spain’s credit rating by two notches late Wednesday, and maintained a negative outlook on the debt-troubled country, citing mounting economic and political risks.
Market players have been anticipating for the past month that the Spanish government would ask for a full-scale sovereign bailout.
A bailout would allow the European Central Bank to step in and buy Spanish sovereign debt, which would result in reduced borrowing costs for the debt-strapped nation.
But Spain has been reluctant to do so because it may come with conditions on its budget.
In Tokyo, the Nikkei sank to the lowest level in two months, as investors remained concerned over the outlook for global growth and its impact on company earnings.
Shares in Toyota fell 1.35% after saying it would recall more than 7.4 million vehicles worldwide for faulty power window switches.
Elsewhere in the sector, Honda shares retreated 0.65% and Nissan declined 1.2%.
Japanese automakers have been under pressure in recent sessions, amid concerns over a slowdown in demand from China, after a territorial row over a group of disputed islands between the two countries sparked boycotts and protests.
The Nikkei came under further pressure after data showed core machinery orders dropped 3.3% in August, disappointing expectations for a 2.3% decline.
Shares in heavy machinery makers Komatsu and Sumitomo Heavy Industries retreated 1% and 1.1% respectively, while shares in industrial robot maker Fanuc lost 2.65%.
Elsewhere, shares in Hong Kong managed to eek out small gains, as shares in the financial sector rose on the back of expectations of more government support to boost growth.
On Wednesday, Central Huijin, a unit of China's sovereign wealth fund, said that it had bought shares of the "Big 4" banks and would continue to increase its stakes.
China’s biggest lender Industrial and Commercial Bank of China saw shares rally 4%, China Construction Bank shares gained 2.2%, while Bank of China shares rose 2.7%.
Meanwhile, shares in Australia managed to come off the lowest levels of the sessions after official data showed that the nation’s employers added 14,500 jobs in September, above expectations for an increase of 3,800.
Shares in rare-earth miner Lynas plunged 15%, after a Malaysian court postponed a decision on a temporary operating license for the firm’s refinery in that country, adding to months of delays.
In Europe, regional markets were mixed to lower after the open, as uncertainty over how soon Spain will formally request a bailout curbed demand for riskier assets.
The EURO STOXX 50 fell 0.3%, France’s CAC 40 eased up 0.1%, London’s FTSE 100 was flat, while Germany's DAX edged down 0.1%.
Later in the day, the European Central Bank was to publish its monthly bulletin. The U.S. was to publish government data on the trade balance, in addition to official data on initial jobless claims and crude oil stockpiles.
Lingering concerns over the health of the global economy and its impact on corporate earnings further dampened appetite for riskier assets.
During late Asian trade, Hong Kong's Hang Seng Index eased up 0.2%, Australia’s ASX/200 Index ended down 0.2%, while Japan’s Nikkei 225 Index shed 0.6%.
Standard & Poor’s cut Spain’s credit rating by two notches late Wednesday, and maintained a negative outlook on the debt-troubled country, citing mounting economic and political risks.
Market players have been anticipating for the past month that the Spanish government would ask for a full-scale sovereign bailout.
A bailout would allow the European Central Bank to step in and buy Spanish sovereign debt, which would result in reduced borrowing costs for the debt-strapped nation.
But Spain has been reluctant to do so because it may come with conditions on its budget.
In Tokyo, the Nikkei sank to the lowest level in two months, as investors remained concerned over the outlook for global growth and its impact on company earnings.
Shares in Toyota fell 1.35% after saying it would recall more than 7.4 million vehicles worldwide for faulty power window switches.
Elsewhere in the sector, Honda shares retreated 0.65% and Nissan declined 1.2%.
Japanese automakers have been under pressure in recent sessions, amid concerns over a slowdown in demand from China, after a territorial row over a group of disputed islands between the two countries sparked boycotts and protests.
The Nikkei came under further pressure after data showed core machinery orders dropped 3.3% in August, disappointing expectations for a 2.3% decline.
Shares in heavy machinery makers Komatsu and Sumitomo Heavy Industries retreated 1% and 1.1% respectively, while shares in industrial robot maker Fanuc lost 2.65%.
Elsewhere, shares in Hong Kong managed to eek out small gains, as shares in the financial sector rose on the back of expectations of more government support to boost growth.
On Wednesday, Central Huijin, a unit of China's sovereign wealth fund, said that it had bought shares of the "Big 4" banks and would continue to increase its stakes.
China’s biggest lender Industrial and Commercial Bank of China saw shares rally 4%, China Construction Bank shares gained 2.2%, while Bank of China shares rose 2.7%.
Meanwhile, shares in Australia managed to come off the lowest levels of the sessions after official data showed that the nation’s employers added 14,500 jobs in September, above expectations for an increase of 3,800.
Shares in rare-earth miner Lynas plunged 15%, after a Malaysian court postponed a decision on a temporary operating license for the firm’s refinery in that country, adding to months of delays.
In Europe, regional markets were mixed to lower after the open, as uncertainty over how soon Spain will formally request a bailout curbed demand for riskier assets.
The EURO STOXX 50 fell 0.3%, France’s CAC 40 eased up 0.1%, London’s FTSE 100 was flat, while Germany's DAX edged down 0.1%.
Later in the day, the European Central Bank was to publish its monthly bulletin. The U.S. was to publish government data on the trade balance, in addition to official data on initial jobless claims and crude oil stockpiles.