Investing.com – Asian stock markets fell on Tuesday, tracking 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 dropped 1.2%, Australia’s ASX/200 Index shed 0.44%, while Japan’s Nikkei 225 Index slumped 0.72%.
Market sentiment was dented after yields of Italian five-year government bonds rose to a euro-era high of 6.29% on Monday, up from 5.32% in a previous sale last month.
Adding to nervousness over the region’s debt crisis, Spanish government debt came under pressure ahead of next week’s general elections, with the 10-year yield rising above 6.0% for the first time since early August.
Financial shares in Hong Kong were broadly lower. Hong Kong-listed shares of Europe’s largest lender HSBC Holdings fell 1.85%, while China’s largest lender Industrial and Commercial Bank of China dropped 2.1%.
However, shares in China Construction Bank added 0.9% after Bank of America sold a 4% stake in the lender, raising approximately USD6 billion.
Property developers also contributed to losses, with Hong Kong’s second largest property developer Evergrande Real Estate Group tumbling 6.6% after the firm’s chide executive said the outlook for home prices in China is “difficult.”
Hang Lung Properties retreated 2.5%, Henderson Land Development slumped 3.15%, while China Overseas Land & Development shares fell 1.4%.
Elsewhere, in Japan, exporters came under pressure after the yen dipped below the 77.00-mark against the U.S. dollar, dampening the outlook for export earnings.
Consumer electronics giant Sony slumped 1.45%, automaker Nissan declined 1.1%, while shares in Elpida Memory tumbled 9.1% amid speculation the stock will be removed from the MSCI Asia Pacific Index. Investors and funds that track indexes may buy or sell stocks depending on their inclusion in gauges.
Shares in scandal-hit Olympus rallied 18.5%, following the previous session’s 17.4% gain amid ongoing speculation the company may avoid delisting from the Tokyo Stock Exchange.
Meanwhile, the outlook for European stock markets was downbeat. The EURO STOXX 50 futures pointed to a loss of 0.9%, France’s CAC 40 futures shed 0.75%, the FTSE 100 futures slipped 0.65%, while Germany's DAX futures indicated a drop of 1.1%.
Earlier Tuesday, official data showed that Germany’s gross domestic product rose in line with expectations in the third quarter, expanding 0.5%, from an upwardly revised 0.3% in the preceding quarter.
During late Asian trade, Hong Kong's Hang Seng Index dropped 1.2%, Australia’s ASX/200 Index shed 0.44%, while Japan’s Nikkei 225 Index slumped 0.72%.
Market sentiment was dented after yields of Italian five-year government bonds rose to a euro-era high of 6.29% on Monday, up from 5.32% in a previous sale last month.
Adding to nervousness over the region’s debt crisis, Spanish government debt came under pressure ahead of next week’s general elections, with the 10-year yield rising above 6.0% for the first time since early August.
Financial shares in Hong Kong were broadly lower. Hong Kong-listed shares of Europe’s largest lender HSBC Holdings fell 1.85%, while China’s largest lender Industrial and Commercial Bank of China dropped 2.1%.
However, shares in China Construction Bank added 0.9% after Bank of America sold a 4% stake in the lender, raising approximately USD6 billion.
Property developers also contributed to losses, with Hong Kong’s second largest property developer Evergrande Real Estate Group tumbling 6.6% after the firm’s chide executive said the outlook for home prices in China is “difficult.”
Hang Lung Properties retreated 2.5%, Henderson Land Development slumped 3.15%, while China Overseas Land & Development shares fell 1.4%.
Elsewhere, in Japan, exporters came under pressure after the yen dipped below the 77.00-mark against the U.S. dollar, dampening the outlook for export earnings.
Consumer electronics giant Sony slumped 1.45%, automaker Nissan declined 1.1%, while shares in Elpida Memory tumbled 9.1% amid speculation the stock will be removed from the MSCI Asia Pacific Index. Investors and funds that track indexes may buy or sell stocks depending on their inclusion in gauges.
Shares in scandal-hit Olympus rallied 18.5%, following the previous session’s 17.4% gain amid ongoing speculation the company may avoid delisting from the Tokyo Stock Exchange.
Meanwhile, the outlook for European stock markets was downbeat. The EURO STOXX 50 futures pointed to a loss of 0.9%, France’s CAC 40 futures shed 0.75%, the FTSE 100 futures slipped 0.65%, while Germany's DAX futures indicated a drop of 1.1%.
Earlier Tuesday, official data showed that Germany’s gross domestic product rose in line with expectations in the third quarter, expanding 0.5%, from an upwardly revised 0.3% in the preceding quarter.