Investing.com - Asian stock markets plummeted Tuesday as investors sold and fled risk, bolting to safer assets such as U.S. Treasury bills in line with their U.S. and European counterparts.
During early Asian trading, Hong Kong's Hang Seng Index was down 1.26%, Australia's S&P/ASX200 was down 1.49%, while Japan’s Nikkei 225 Index plummeted 1.45%.
After drawing an initial applause, a European economic summit Friday quickly became the target for criticism among market watchers, including the Moody's credit ratings agency, who said greater fiscal integration won't solve the continent's problems today.
Moody's said it was sticking with plans to review credit ratings for many European economies, which could result in downgrades.
Plus while European commitment to fiscal discipline is a good thing, it won't address the problem of firewalling the crisis.
In fact, fiscal austerity may do little more than just slow growth over the long haul, which could actually cause more losses down the road.
Furthermore, the European Central Bank has said it won't act as a lender of last resort and buy debt issued by troubled countries like Greece, Spain or Italy.
Monetary policy officials have said doing so goes against the bank's mandate of keeping inflation in comfort zones, and have argued government officials need to carry out tough reforms and end the crisis, even if those reforms are politically unpopular.
Chinese exports, meanwhile, rose 13.8% in November, failing to beat a previous gain of 15.9% in October.
In Japan, the country's tertiary industry activity index, which measures business demand for services, rose at a more robust clip in October than in September, according to official data.
In a report, the government said Japanese tertiary industry activity index rose to a seasonally adjusted 0.6%, from -0.7% in the preceding month.
However, the Japanese household confidence rate came in at 38.1, below a forecast for 38.3.
China's leading losers included Esprit Holdings, down 3.12%, Cathay Pacific Air, down 2.91% and New World Dev, down 2.48%.
In Australia, leading losers included Aquarius Platinum, down 8.39%, Medusa Mining, down 7.98% and Aquila Resources, down 5.77%.
European stock futures were up on hopes many share prices may have been oversold during Monday's selloff.
During Asian trade, France ’s CAC 40 futures were up 0.22%, while Germany ’s DAX 30 futures were up 0.11%. Meanwhile, in the U.K. FTSE 100 futures were up 0.13%.
Dow Jones Industrial Average futures were up 0.09% while the broader S&P 500 futures were up 0.15%.
In the U.S. the Federal Reserve will hold its next monetary policy meeting on Tuesday.
The Federal Open Market Committee is expected to keep benchmark lending rates at their current 0.25% rate, although markets will move on language emerging from the meeting.
Talk of further easing and other loose monetary policies would be bullish for U.S. equities.
The Census Bureau will release retail sales as well, with November figures expected to show a gain of 0.5%.
While U.S. data is expected to serve as the primary driver of markets going forward, inflation data out of the United Kingdom and France hit the wire later.
The French consumer price index should grow 0.3% on year while the U.K. inflation rate should jump up 4.8%.
The U.K. retail price index is due out as well, and the market is expecting a 5.1% increase.
In Germany, the Zentrum für Europäische Wirtschaftsforschung (ZEW) Economic Sentiment Index will publish on Tuesday as well.
The index, which gauges the economic sentiment in Europe's economic engine, should come in at -55.8 compared to a previous -55.2 reading.
During early Asian trading, Hong Kong's Hang Seng Index was down 1.26%, Australia's S&P/ASX200 was down 1.49%, while Japan’s Nikkei 225 Index plummeted 1.45%.
After drawing an initial applause, a European economic summit Friday quickly became the target for criticism among market watchers, including the Moody's credit ratings agency, who said greater fiscal integration won't solve the continent's problems today.
Moody's said it was sticking with plans to review credit ratings for many European economies, which could result in downgrades.
Plus while European commitment to fiscal discipline is a good thing, it won't address the problem of firewalling the crisis.
In fact, fiscal austerity may do little more than just slow growth over the long haul, which could actually cause more losses down the road.
Furthermore, the European Central Bank has said it won't act as a lender of last resort and buy debt issued by troubled countries like Greece, Spain or Italy.
Monetary policy officials have said doing so goes against the bank's mandate of keeping inflation in comfort zones, and have argued government officials need to carry out tough reforms and end the crisis, even if those reforms are politically unpopular.
Chinese exports, meanwhile, rose 13.8% in November, failing to beat a previous gain of 15.9% in October.
In Japan, the country's tertiary industry activity index, which measures business demand for services, rose at a more robust clip in October than in September, according to official data.
In a report, the government said Japanese tertiary industry activity index rose to a seasonally adjusted 0.6%, from -0.7% in the preceding month.
However, the Japanese household confidence rate came in at 38.1, below a forecast for 38.3.
China's leading losers included Esprit Holdings, down 3.12%, Cathay Pacific Air, down 2.91% and New World Dev, down 2.48%.
In Australia, leading losers included Aquarius Platinum, down 8.39%, Medusa Mining, down 7.98% and Aquila Resources, down 5.77%.
European stock futures were up on hopes many share prices may have been oversold during Monday's selloff.
During Asian trade, France ’s CAC 40 futures were up 0.22%, while Germany ’s DAX 30 futures were up 0.11%. Meanwhile, in the U.K. FTSE 100 futures were up 0.13%.
Dow Jones Industrial Average futures were up 0.09% while the broader S&P 500 futures were up 0.15%.
In the U.S. the Federal Reserve will hold its next monetary policy meeting on Tuesday.
The Federal Open Market Committee is expected to keep benchmark lending rates at their current 0.25% rate, although markets will move on language emerging from the meeting.
Talk of further easing and other loose monetary policies would be bullish for U.S. equities.
The Census Bureau will release retail sales as well, with November figures expected to show a gain of 0.5%.
While U.S. data is expected to serve as the primary driver of markets going forward, inflation data out of the United Kingdom and France hit the wire later.
The French consumer price index should grow 0.3% on year while the U.K. inflation rate should jump up 4.8%.
The U.K. retail price index is due out as well, and the market is expecting a 5.1% increase.
In Germany, the Zentrum für Europäische Wirtschaftsforschung (ZEW) Economic Sentiment Index will publish on Tuesday as well.
The index, which gauges the economic sentiment in Europe's economic engine, should come in at -55.8 compared to a previous -55.2 reading.