Investing.com - Asian stock markets fell sharply on Wednesday, as ongoing concerns over the health of China’s economy dampened demand for riskier assets.
During late Asian trade, Hong Kong's Hang Seng Index dropped 1.6%, China’s Shanghai Composite Index slumped 0.2%, Australia’s ASX/200 Index closed 0.55% lower, while Japan’s Nikkei 225 Index ended down 2.59%.
Asia was given a negative lead from the U.S., where the S&P 500 and Dow Jones closed lower amid lingering concerns over the health of China’s economy and the ongoing crisis in Ukraine.
Markets in mainland China and Hong Kong declined as shares in the financial sector sold off amid worries about domestic bond defaults.
In Hong Kong, China Construction Bank lost 1.4%, Industrial and Commercial Bank of China slumped 1.5%, while China Merchants Bank dropped 1.9%.
Meanwhile, in Tokyo, the Nikkei fell to a one-week low as the yen strengthened against the U.S. dollar, weighing on sentiment. USD/JPY fell to a daily low of 102.79, moving off the previous session’s high of 103.41.
Automakers Toyota and Honda saw shares drop 1.95% apiece, while Mazda and Nissan retreated 3% and 2% respectively.
Index heavyweights Fanuc, Fast Retailing and Softbank lost 3.2%, 2.9% and 3.85% respectively.
Elsewhere, in Australia, the ASX/200 Index edged lower as copper producers came under pressure amid concerns over a slowdown in Chinese demand for raw materials.
OZ Minerals lost 2.5%, PanAust tumbled 4%, while Sandfire Resources dropped 1.6%. Australian commodity producers are heavily reliant on Chinese demand for raw materials.
Data showing that consumer confidence in the country fell further in March, extending its decline from a post-election peak in November, also weighed on sentiment. Retailers traded lower, with David Jones falling 1.5%, Wesfarmers losing 0.8% and Myer Holdings slumping 0.7%.
Looking ahead, European stock market futures pointed to a lower open. The EURO STOXX 50 futures pointed to a loss of 0.65% at the open, France’s CAC 40 futures dipped 0.65%, London’s FTSE 100 futures indicated a fall of 0.8%, while Germany's DAX futures shed 0.7%.
Across the Atlantic, U.S. equity markets also pointed to a weaker open. The Dow Jones Industrial Average futures pointed to a loss of 0.15%, S&P 500 futures shed 0.15%, while the Nasdaq 100 futures indicated a drop of 0.1%.