Investing.com - Asian stock markets were mostly lower in choppy trade on Tuesday, as ongoing uncertainty over the timing of the Federal Reserve’s widely expected reduction in monthly bond purchases weighed on appetite for riskier assets.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of global equities.
During late Asian trade, Hong Kong's Hang Seng Index was down 0.65%, Australia’s ASX/200 Index ended up 0.11% higher, while Japan’s Nikkei 225 Index closed down 0.69%.
Data on Monday showed that U.S. durable goods orders dropped 7.3% in July, worse than expectations for a 4% decline. It was the largest decline since August 2012.
Core durable goods orders, excluding volatile transportation items, fell 0.6% last month, defying expectations for a 0.5% increase.
The data came after a report on Friday showed that U.S. new home sales fell by a larger-than-forecast 13.4% in July, the largest decline in more than three years.
The weak data added to uncertainty over whether the Federal Reserve will start to taper its USD85 billion-a-month asset purchase program next month.
Meanwhile, speculation mounted that the U.S. and other Western nations will intervene in Syria in wake of allegations that Bashar al-Assad’s government forces used chemical weaponry against civilians.
Secretary of State John Kerry said the U.S. will hold Syria’s government accountable for using chemical weapons against civilians.
In Tokyo, the Nikkei was down for the second consecutive day as the yen strengthened against the U.S. dollar, weighing on sentiment.
USD/JPY fell to hit a session low of 98.02, moving off the previous session’s high of 98.83. A stronger yen reduces the value of overseas income at Japanese companies when repatriated, dampening the outlook for export earnings.
Automakers Mazda and Nissan saw shares drop 1% and 1.4% respectively.
Japanese megabanks were also lower with shares of the nation’s largest lender Mitsubishi UFJ Financial Group shedding 0.5%, while Sumitomo Mitsui Financial Group and Nomura Holdings declined 0.9% and 0.8% respectively.
Index heavyweights Fast Retailing and Softbank saw shares drop 1.4% and 0.5% respectively.
Meanwhile, in Hong Kong, the Hang Seng inched lower as Chinese lenders were among the biggest drags on the index.
China Construction Bank saw shares fall 1.7%, Industrial and Commercial Bank of China shed 1% and China Minsheng Bank declined 1.9%.
Footwear major Belle International Holdings fell 3% to give back some of the previous session’s strong gains, which were made on the back of upbeat earnings.
China Southern Airlines saw shares retreat 3.1% after reporting a 19% drop in first-half net profit.
Elsewhere, in Australia, the benchmark ASX/200 Index edged higher in volatile trade as investors reassessed expectations on when the Fed may start to unwind its asset purchase program.
Surf-wear retailer Billabong saw shares tumble 9.7% after posting a wider-than-expected yearly loss of AUD860 million.
Looking ahead, European stock market futures pointed to a lower open.
The EURO STOXX 50 futures pointed to a loss of 0.2% at the open, France’s CAC 40 futures dipped 0.25%, London’s FTSE 100 futures pointed to a drop of 0.35%, while Germany's DAX futures indicated a loss of 0.2%.
The Ifo institute was to release a report on German business climate later Tuesday. The U.S. was to publish private sector data on house price inflation, as well as a closely watched report on consumer confidence.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of global equities.
During late Asian trade, Hong Kong's Hang Seng Index was down 0.65%, Australia’s ASX/200 Index ended up 0.11% higher, while Japan’s Nikkei 225 Index closed down 0.69%.
Data on Monday showed that U.S. durable goods orders dropped 7.3% in July, worse than expectations for a 4% decline. It was the largest decline since August 2012.
Core durable goods orders, excluding volatile transportation items, fell 0.6% last month, defying expectations for a 0.5% increase.
The data came after a report on Friday showed that U.S. new home sales fell by a larger-than-forecast 13.4% in July, the largest decline in more than three years.
The weak data added to uncertainty over whether the Federal Reserve will start to taper its USD85 billion-a-month asset purchase program next month.
Meanwhile, speculation mounted that the U.S. and other Western nations will intervene in Syria in wake of allegations that Bashar al-Assad’s government forces used chemical weaponry against civilians.
Secretary of State John Kerry said the U.S. will hold Syria’s government accountable for using chemical weapons against civilians.
In Tokyo, the Nikkei was down for the second consecutive day as the yen strengthened against the U.S. dollar, weighing on sentiment.
USD/JPY fell to hit a session low of 98.02, moving off the previous session’s high of 98.83. A stronger yen reduces the value of overseas income at Japanese companies when repatriated, dampening the outlook for export earnings.
Automakers Mazda and Nissan saw shares drop 1% and 1.4% respectively.
Japanese megabanks were also lower with shares of the nation’s largest lender Mitsubishi UFJ Financial Group shedding 0.5%, while Sumitomo Mitsui Financial Group and Nomura Holdings declined 0.9% and 0.8% respectively.
Index heavyweights Fast Retailing and Softbank saw shares drop 1.4% and 0.5% respectively.
Meanwhile, in Hong Kong, the Hang Seng inched lower as Chinese lenders were among the biggest drags on the index.
China Construction Bank saw shares fall 1.7%, Industrial and Commercial Bank of China shed 1% and China Minsheng Bank declined 1.9%.
Footwear major Belle International Holdings fell 3% to give back some of the previous session’s strong gains, which were made on the back of upbeat earnings.
China Southern Airlines saw shares retreat 3.1% after reporting a 19% drop in first-half net profit.
Elsewhere, in Australia, the benchmark ASX/200 Index edged higher in volatile trade as investors reassessed expectations on when the Fed may start to unwind its asset purchase program.
Surf-wear retailer Billabong saw shares tumble 9.7% after posting a wider-than-expected yearly loss of AUD860 million.
Looking ahead, European stock market futures pointed to a lower open.
The EURO STOXX 50 futures pointed to a loss of 0.2% at the open, France’s CAC 40 futures dipped 0.25%, London’s FTSE 100 futures pointed to a drop of 0.35%, while Germany's DAX futures indicated a loss of 0.2%.
The Ifo institute was to release a report on German business climate later Tuesday. The U.S. was to publish private sector data on house price inflation, as well as a closely watched report on consumer confidence.