Investing.com - Asian stock markets were lower on Tuesday, as investors continued to shun riskier assets amid fears that ongoing political turmoil in Greece could result in the county’s eventual exit from the euro zone.
During late Asian trade, Hong Kong's Hang Seng Index rose 0.5%, Australia’s ASX/200 Index declined 0.7%, while Japan’s Nikkei 225 Index slumped 0.8%.
Speculation over the possibility of a Greek exit from the euro zone intensified on Monday, as talks aimed at forming a coalition government remained at an impasse.
The deadlock fueled fears that a fresh round of elections is becoming inevitable and cast doubts over the country’s ability to uphold its fiscal commitments.
In Japan, the Nikkei dropped to the lowest level since February 3 in morning trade as exporters with high exposure to Europe came under heavy selling pressure.
Shares in Mazda, the Japanese carmaker with the highest proportion of European sales, dropped 2.75%, Yamaha Motor lost 4.25%, while consumer electronics giant Sony fell 2.25%.
Nippon Sheet Glass, which gets almost 40% of its sales in Europe, fell 3.15% to its lowest level on record.
Lenders were lower, after ratings agency Moody’s downgraded 26 Italian banks late Monday. Mitsubishi UFJ Financial Group declined 1.15%, while investment banks Nomura Holdings and Daiwa Securities slumped 2.15% and 2.2% respectively.
Meanwhile, shares in Hong Kong looked set to advance for the first time in ten sessions, breaking its longest losing streak in nearly two decades.
Shares in Winsor Properties Holdings surged 29.3% following news that China Vanke has agreed to pay HKD1.1 billion for a 74% stake in Winsor.
Shares in internet giant Tencent rose 2.15%, re-approaching a record-high hit on May 3. The company is set to report earnings later in the week.
Elsewhere, shares in Australia declined, as miners led losses amid fears over a slowdown in demand for commodities and after oil and metal prices dropped to multi-month lows on Monday.
Mining heavyweights BHP Billiton and Rio Tinto retreated 1.9% and 1.35% respectively, while iron ore producer Fortescue Metals tumbled 4.5%.
Looking ahead, the outlook for European stock markets was upbeat, as stocks looked set to recover from the previous day’s plunge.
The EURO STOXX 50 futures pointed to a gain of 0.25%, France’s CAC 40 futures rose 0.4%, London’s FTSE 100 futures added 0.1%, while Germany's DAX futures gained 0.35%.
Preliminary data showed earlier that Germany’s economy expanded more-than-expected in the first quarter, indicating that the euro zone’s largest economy is weathering the effects of the crisis in the region.
Germany’s gross domestic product grew by a seasonally adjusted 0.5% in the three months to March, above expectations for a growth of 0.1%.
Later in the day, the euro zone was to produce preliminary data on GDP, while the ZEW Centre for Economic Research was to release a report on German economic sentiment as well as economic sentiment throughout the euro area. European Union finance ministers are also scheduled to hold talks throughout the day.
Later Tuesday, the U.S. was to publish official data on retail sales and consumer price inflation, as well as a report on manufacturing activity in New York.
During late Asian trade, Hong Kong's Hang Seng Index rose 0.5%, Australia’s ASX/200 Index declined 0.7%, while Japan’s Nikkei 225 Index slumped 0.8%.
Speculation over the possibility of a Greek exit from the euro zone intensified on Monday, as talks aimed at forming a coalition government remained at an impasse.
The deadlock fueled fears that a fresh round of elections is becoming inevitable and cast doubts over the country’s ability to uphold its fiscal commitments.
In Japan, the Nikkei dropped to the lowest level since February 3 in morning trade as exporters with high exposure to Europe came under heavy selling pressure.
Shares in Mazda, the Japanese carmaker with the highest proportion of European sales, dropped 2.75%, Yamaha Motor lost 4.25%, while consumer electronics giant Sony fell 2.25%.
Nippon Sheet Glass, which gets almost 40% of its sales in Europe, fell 3.15% to its lowest level on record.
Lenders were lower, after ratings agency Moody’s downgraded 26 Italian banks late Monday. Mitsubishi UFJ Financial Group declined 1.15%, while investment banks Nomura Holdings and Daiwa Securities slumped 2.15% and 2.2% respectively.
Meanwhile, shares in Hong Kong looked set to advance for the first time in ten sessions, breaking its longest losing streak in nearly two decades.
Shares in Winsor Properties Holdings surged 29.3% following news that China Vanke has agreed to pay HKD1.1 billion for a 74% stake in Winsor.
Shares in internet giant Tencent rose 2.15%, re-approaching a record-high hit on May 3. The company is set to report earnings later in the week.
Elsewhere, shares in Australia declined, as miners led losses amid fears over a slowdown in demand for commodities and after oil and metal prices dropped to multi-month lows on Monday.
Mining heavyweights BHP Billiton and Rio Tinto retreated 1.9% and 1.35% respectively, while iron ore producer Fortescue Metals tumbled 4.5%.
Looking ahead, the outlook for European stock markets was upbeat, as stocks looked set to recover from the previous day’s plunge.
The EURO STOXX 50 futures pointed to a gain of 0.25%, France’s CAC 40 futures rose 0.4%, London’s FTSE 100 futures added 0.1%, while Germany's DAX futures gained 0.35%.
Preliminary data showed earlier that Germany’s economy expanded more-than-expected in the first quarter, indicating that the euro zone’s largest economy is weathering the effects of the crisis in the region.
Germany’s gross domestic product grew by a seasonally adjusted 0.5% in the three months to March, above expectations for a growth of 0.1%.
Later in the day, the euro zone was to produce preliminary data on GDP, while the ZEW Centre for Economic Research was to release a report on German economic sentiment as well as economic sentiment throughout the euro area. European Union finance ministers are also scheduled to hold talks throughout the day.
Later Tuesday, the U.S. was to publish official data on retail sales and consumer price inflation, as well as a report on manufacturing activity in New York.