Investing.com – Asian stock markets were sharply lower on Tuesday after the International Monetary Fund cut its growth forecast for Japan and the U.S., while shares in Tokyo dropped amid ongoing fears over the nation’s nuclear crisis.
During late Asian trade, Hong Kong's Hang Seng Index slumped 1.5%, South Korea's Kospi Composite tumbled 1.55%, while Japan’s Nikkei 225 Index plunged 1.69%.
Earlier in the day, Japan’s Nuclear and Industrial Safety Agency raised its assessment of the Fukushima nuclear accident from 5 to 7, a level that matches the 1986 Chernobyl disaster and indicates the most severe crisis. News that another quake rocked eastern Japan earlier in the day also weighed.
Shares in Tokyo Electric Power Company, operator of the stricken Fukushima Daiichi plant plunged 10% on the news.
Meanwhile, the International Monetary Fund on Monday cut its 2011 growth outlook for Japan to 1.4% from a previous estimate of 1.6%, citing the impact of the nation’s devastating March 11 earthquake and tsunami. The IMF also lowered its growth estimate for the U.S. to 2.8%, down from January’s forecast of 3%.
Japan's Economics Minister Kaoru Yosano warned that the economic damage from last month's quake and tsunami was likely to be worse than initially expected as power shortages will crimp factory output and disrupt supply chains.
Shares in Honda dropped 1.4% after it warned that a disruption to supplies could threaten its output of vehicles through July.
Meanwhile, shares in Japan’s largest oil and gas producer Inpex slumped 5.2% as oil prices retreated from a 30-month high amid speculation of a Libyan cease-fire.
In Hong Kong, oil and gas major PetroChina tumbled 5.1%, rival Sinopec sank 2.5%, while shares in Chian’s largest offshore oil producer CNOOC slumped 3.6%.
The outlook for European equity markets, meanwhile, was downbeat. The EURO STOXX 50 futures pointed to a loss of 0.66%, France’s CAC 40 futures shed 0.5%, the FTSE 100 futures dropped 0.54%, while Germany's DAX futures indicated a decline of 0.77%.
Later in the day, the ZEW Centre for Economic Research is to publish a report on German economic sentiment, while the U.S. is to release government data on its trade balance and the federal budget balance.
During late Asian trade, Hong Kong's Hang Seng Index slumped 1.5%, South Korea's Kospi Composite tumbled 1.55%, while Japan’s Nikkei 225 Index plunged 1.69%.
Earlier in the day, Japan’s Nuclear and Industrial Safety Agency raised its assessment of the Fukushima nuclear accident from 5 to 7, a level that matches the 1986 Chernobyl disaster and indicates the most severe crisis. News that another quake rocked eastern Japan earlier in the day also weighed.
Shares in Tokyo Electric Power Company, operator of the stricken Fukushima Daiichi plant plunged 10% on the news.
Meanwhile, the International Monetary Fund on Monday cut its 2011 growth outlook for Japan to 1.4% from a previous estimate of 1.6%, citing the impact of the nation’s devastating March 11 earthquake and tsunami. The IMF also lowered its growth estimate for the U.S. to 2.8%, down from January’s forecast of 3%.
Japan's Economics Minister Kaoru Yosano warned that the economic damage from last month's quake and tsunami was likely to be worse than initially expected as power shortages will crimp factory output and disrupt supply chains.
Shares in Honda dropped 1.4% after it warned that a disruption to supplies could threaten its output of vehicles through July.
Meanwhile, shares in Japan’s largest oil and gas producer Inpex slumped 5.2% as oil prices retreated from a 30-month high amid speculation of a Libyan cease-fire.
In Hong Kong, oil and gas major PetroChina tumbled 5.1%, rival Sinopec sank 2.5%, while shares in Chian’s largest offshore oil producer CNOOC slumped 3.6%.
The outlook for European equity markets, meanwhile, was downbeat. The EURO STOXX 50 futures pointed to a loss of 0.66%, France’s CAC 40 futures shed 0.5%, the FTSE 100 futures dropped 0.54%, while Germany's DAX futures indicated a decline of 0.77%.
Later in the day, the ZEW Centre for Economic Research is to publish a report on German economic sentiment, while the U.S. is to release government data on its trade balance and the federal budget balance.