Investing.com - Asian stock markets fell sharply on Wednesday, as mounting concerns over the outlook for global growth weighed on appetite for riskier assets, ahead of the European Central Bank's policy meeting on Thursday and U.S. jobs data on Friday.
During late Asian trade, Hong Kong's Hang Seng Index sank 1.5%, Australia’s ASX/200 Index declined 0.6%, while Japan’s Nikkei 225 Index ended down 1.1%.
Data released Tuesday showed that manufacturing activity in the U.S. contracted for the third consecutive month in August, fuelling concerns over the health of the world’s largest economy.
The gloomy manufacturing data came a day after a report showed that manufacturing activity in China fell to the lowest level in three years last month, while the euro zone’s manufacturing sector contracted for the 13th month in a row in August.
Investors were also cautious ahead of the ECB’s policy meeting on Thursday, where President Mario Draghi was expected to announce details of measures to help stabilize the region’s sovereign debt markets.
Market participants also looked ahead to Friday’s crucial U.S. non-farm payrolls data, which will allow investors to gauge the strength of the labor market and the need for additional easing by the Federal Reserve.
Mounting speculation the Federal Reserve was moving closer to introducing fresh measures to stimulate growth in the U.S. economy has helped support market sentiment in recent sessions.
In Tokyo, the Nikkei settled at a four-week low for the fourth consecutive day as a strengthening yen and worries over the uncertain global outlook weighed on exporters.
Consumer electronics makers Sony and Panasonic slumped 3% and 2.45% respectively, while digital camera maker Canon sank 3.95%.
Shares in heavy machinery makers came under pressure following the downbeat global manufacturing data and after data on Tuesday showed that construction spending in the U.S. fell by the most in a year in July.
Komatsu shares fell 3.5%, industrial robot maker Fanuc lost 2%, while Hitachi Construction Machinery declined 3.2%.
Shares in troubled computer services provider NEC retreated 2.7% after reports said the company would sell its entire stake in China's Lenovo for nearly JPY18 billion.
Elsewhere, in Hong Kong, the Hang Seng came under pressure amid ongoing concerns over a deeper-than-expected slowdown in China’s economy.
Inflation and industrial production data are due on Sunday, while trade numbers will be released next Monday, which may give a clearer picture of the state of the Chinese economy.
Chinese financials were mostly lower, with China Construction Bank shares trading down 1.8%, Industrial and Commercial Bank of China slumping 1.7% and Bank of China declining 1.45%.
Index heavyweight HSBC Holdings also contributed to losses, dropping 2%. Europe’s largest bank command a 15% weighting on the Hong Kong benchmark, making it the single largest constituent on the index.
Shares of Lenovo sank 6.6% on reports NEC planned to sell its entire 2.7% stake in the Chinese PC maker.
Meanwhile, in Australia, miners fell sharply amid growing concerns over a slowdown in commodity demand from China and after iron ore prices continued their march lower.
BHP Billiton and Rio Tinto lost 1.8% and 2.2% respectively, while iron ore makers Fortescue Metals and Sundance Resources plunged 8.5% and 13.1% respectively.
The big four banks all fell after data showed that the country's gross domestic product grew 0.6% in the second quarter, missing analysts' calls for 0.7% growth.
Looking ahead, European stock market futures pointed to a lower open, as investors looked ahead to the European Central Bank's policy setting meeting and U.S. jobs data later in the week.
The EURO STOXX 50 futures pointed to a loss of 0.4% at the open, France’s CAC 40 futures shed 0.65%, London’s FTSE 100 futures dipped 0.4%, while Germany's DAX futures pointed to a loss of 0.4%.
Later in the day, the euro zone was to publish official data on retail sales, while the U.S. was to produce revised data on nonfarm productivity.
During late Asian trade, Hong Kong's Hang Seng Index sank 1.5%, Australia’s ASX/200 Index declined 0.6%, while Japan’s Nikkei 225 Index ended down 1.1%.
Data released Tuesday showed that manufacturing activity in the U.S. contracted for the third consecutive month in August, fuelling concerns over the health of the world’s largest economy.
The gloomy manufacturing data came a day after a report showed that manufacturing activity in China fell to the lowest level in three years last month, while the euro zone’s manufacturing sector contracted for the 13th month in a row in August.
Investors were also cautious ahead of the ECB’s policy meeting on Thursday, where President Mario Draghi was expected to announce details of measures to help stabilize the region’s sovereign debt markets.
Market participants also looked ahead to Friday’s crucial U.S. non-farm payrolls data, which will allow investors to gauge the strength of the labor market and the need for additional easing by the Federal Reserve.
Mounting speculation the Federal Reserve was moving closer to introducing fresh measures to stimulate growth in the U.S. economy has helped support market sentiment in recent sessions.
In Tokyo, the Nikkei settled at a four-week low for the fourth consecutive day as a strengthening yen and worries over the uncertain global outlook weighed on exporters.
Consumer electronics makers Sony and Panasonic slumped 3% and 2.45% respectively, while digital camera maker Canon sank 3.95%.
Shares in heavy machinery makers came under pressure following the downbeat global manufacturing data and after data on Tuesday showed that construction spending in the U.S. fell by the most in a year in July.
Komatsu shares fell 3.5%, industrial robot maker Fanuc lost 2%, while Hitachi Construction Machinery declined 3.2%.
Shares in troubled computer services provider NEC retreated 2.7% after reports said the company would sell its entire stake in China's Lenovo for nearly JPY18 billion.
Elsewhere, in Hong Kong, the Hang Seng came under pressure amid ongoing concerns over a deeper-than-expected slowdown in China’s economy.
Inflation and industrial production data are due on Sunday, while trade numbers will be released next Monday, which may give a clearer picture of the state of the Chinese economy.
Chinese financials were mostly lower, with China Construction Bank shares trading down 1.8%, Industrial and Commercial Bank of China slumping 1.7% and Bank of China declining 1.45%.
Index heavyweight HSBC Holdings also contributed to losses, dropping 2%. Europe’s largest bank command a 15% weighting on the Hong Kong benchmark, making it the single largest constituent on the index.
Shares of Lenovo sank 6.6% on reports NEC planned to sell its entire 2.7% stake in the Chinese PC maker.
Meanwhile, in Australia, miners fell sharply amid growing concerns over a slowdown in commodity demand from China and after iron ore prices continued their march lower.
BHP Billiton and Rio Tinto lost 1.8% and 2.2% respectively, while iron ore makers Fortescue Metals and Sundance Resources plunged 8.5% and 13.1% respectively.
The big four banks all fell after data showed that the country's gross domestic product grew 0.6% in the second quarter, missing analysts' calls for 0.7% growth.
Looking ahead, European stock market futures pointed to a lower open, as investors looked ahead to the European Central Bank's policy setting meeting and U.S. jobs data later in the week.
The EURO STOXX 50 futures pointed to a loss of 0.4% at the open, France’s CAC 40 futures shed 0.65%, London’s FTSE 100 futures dipped 0.4%, while Germany's DAX futures pointed to a loss of 0.4%.
Later in the day, the euro zone was to publish official data on retail sales, while the U.S. was to produce revised data on nonfarm productivity.