Investing.com - Asian stocks moved lower in Tuesday trade, following suggestions by German officials that new action on Europe’s sovereign debt crisis may not be ready by next week’s scheduled meeting.
During early Asian trade, Hong Kong’s Hang Seng Index declined 2.67% to 18,369.20, Japan’s Nikkei Index fell 1.42% to 8,753.08, while Australia’s S&P/ASX 200 retreated 1.74% to 4,200.80.
The Topix Index of all shares listed on the first section of the Tokyo Stock Exchange, declined 1.15% to trade at 753.14.
On Monday, German Chancellor Angela Merkel’s spokesman Steffen Seibert dashed market hopes for an imminent solution to Europe’s two-year old debt crisis, saying Merkel had made it clear that, “dreams are taking hold now with this package, everything will be solved and everything will be over on Monday won’t be fulfilled.”
The process for an end to the crisis, “surely extends well into next year,” Seibert said at a news briefing from Berlin.
Over the weekend, the Group of 20 finance ministers and central bankers wrapped up talks in Paris, proposing a scheme to ward off Greek default, strengthen regional financial institutions and halt the spread of debt contagion.
European officials set an October 23 deadline for action at their scheduled meeting in Brussels, Belgium.
Earlier in the day, the U.S. Federal Reserve reported that industrial production rose by a seasonally adjusted 0.2% in September, up from 0.0% in August and in line with market expectations.
On Wall Street, shares suffered from Merkel’s assessment of European debt, with the Dow Jones Industrial Average falling 2.13%, the Nasdaq Composite Index lost 1.98%, and the S&P 500 shed 1.94%.
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Technology and financial issues in the region came under selling pressure in light of ongoing uncertainty on European debt; NEC Corp. fell 1.4%, Sony Corp. dropped 3.1%, Commonwealth Bank of Australia lost 1.7%, and Industrial Bank of Korea shed 1.4%.
In Sydney, telecommunications firm Telstra Corp. Ltd. gained 1.6% after announcing consideration of a stock buyback, after approval of a proposed national broadband network deal valued at USD11.2 billion.
Qantas Airways Ltd. sank 2.92%, as the carrier’s negotiations with its mechanics union has resulted in the cancellation of at least 400 flights over the next month.
In Hong Kong, China Eastern Airlines Corp. declined 2.9% after announcing it would be canceling an order from Boeing Co. for 24 of its 787 Dreamliner aircraft in favor of smaller, more inexpensive 737‘s, citing weak demand for overseas flights.
The outlook for European stocks was optimistic. France’s CAC 40 futures was higher by 0.25% to 3,140.30, Britain’s FTSE 100 futures edged up 0.08% to 5,374.20, while Germany’s DAX futures added 0.02% to 5,815.10.