Investing.com – Asian stock markets were broadly lower on Wednesday, surrendering earlier gains amid uncertainty over whether the Federal Reserve would introduce further stimulus measures, while the Nikkei came under pressure following Moody’s downgrade of the nation’s sovereign debt.
During late Asian trade, Hong Kong's Hang Seng Index dropped 1.15%, Australia’s ASX/200 Index slipped 0.15%, while Japan’s Nikkei 225 Index retreated 1.07%.
Earlier in the day, ratings agency Moody’s cut Japan’s sovereign debt rating by one notch to Aa3 from Aa2 with a stable outlook, citing the nation’s large budget deficits.
Shares in Japanese lenders, may of which have high exposure to the nation’s debt performed poorly. Mitsubishi UFJ Financial Group saw shares fall 2.9%, Sumitomo Mitsui Financial Group dropped 1.8%, while shares in the nation’s third largest lender Mizuho Financial Group closed 0.9% lower.
Meanwhile, Japanese exporters came under pressure from a strong yen, despite new measures unveiled by Finance Minister Yoshihiko Noda earlier to curb the currency’s strength.
Consumer electronics giant Sony saw shares slump 2.95%, Panasonic shares tumbled 3.65%, while automakers Toyota and Honda dropped 1.65% and 1.95% respectively.
Elsewhere, in Hong Kong, shares in the world’s biggest insurer China Life Insurance plunged 13.3% after reporting a 28% decline in first half profit, significantly more-than-expected.
The downbeat results weighed on other shares in the sector, with Ping An Insurance down 3.55% and China Pacific Insurance falling 1.55%.
Shares in the financial sector were also lower, with Industrial and Commercial Bank of China losing 2.85% and China Construction Bank declining 1.4%.
The EURO STOXX 50 futures pointed to a loss of 1.3%, France’s CAC 40 futures dropped 0.85%, the FTSE 100 futures fell 1.2%, while Germany's DAX futures indicated a loss of 1.4%.
Later in the day, the euro zone was to produce official data on industrial new orders, while the Ifo Institute for Economic Research was to release a report on German business climate. Also Wednesday, the U.S. is to publish government data on durable goods orders.
During late Asian trade, Hong Kong's Hang Seng Index dropped 1.15%, Australia’s ASX/200 Index slipped 0.15%, while Japan’s Nikkei 225 Index retreated 1.07%.
Earlier in the day, ratings agency Moody’s cut Japan’s sovereign debt rating by one notch to Aa3 from Aa2 with a stable outlook, citing the nation’s large budget deficits.
Shares in Japanese lenders, may of which have high exposure to the nation’s debt performed poorly. Mitsubishi UFJ Financial Group saw shares fall 2.9%, Sumitomo Mitsui Financial Group dropped 1.8%, while shares in the nation’s third largest lender Mizuho Financial Group closed 0.9% lower.
Meanwhile, Japanese exporters came under pressure from a strong yen, despite new measures unveiled by Finance Minister Yoshihiko Noda earlier to curb the currency’s strength.
Consumer electronics giant Sony saw shares slump 2.95%, Panasonic shares tumbled 3.65%, while automakers Toyota and Honda dropped 1.65% and 1.95% respectively.
Elsewhere, in Hong Kong, shares in the world’s biggest insurer China Life Insurance plunged 13.3% after reporting a 28% decline in first half profit, significantly more-than-expected.
The downbeat results weighed on other shares in the sector, with Ping An Insurance down 3.55% and China Pacific Insurance falling 1.55%.
Shares in the financial sector were also lower, with Industrial and Commercial Bank of China losing 2.85% and China Construction Bank declining 1.4%.
The EURO STOXX 50 futures pointed to a loss of 1.3%, France’s CAC 40 futures dropped 0.85%, the FTSE 100 futures fell 1.2%, while Germany's DAX futures indicated a loss of 1.4%.
Later in the day, the euro zone was to produce official data on industrial new orders, while the Ifo Institute for Economic Research was to release a report on German business climate. Also Wednesday, the U.S. is to publish government data on durable goods orders.