Investing.com - Asian stock markets were mostly lower on Tuesday, as doubts over whether an upcoming European Union summit will yield any progress on tackling the region’s debt crisis dampened demand for riskier assets.
Mounting concerns over the health of the global economy further weighed on regional equities.
During late Asian trade, Hong Kong's Hang Seng Index added 0.3%, Australia’s ASX/200 Index shed 0.4%, while Japan’s Nikkei 225 Index declined 0.8%.
Market sentiment soured amid growing skepticism over whether European leaders will make any progress towards greater fiscal integration and allowing the bloc's rescue funds to buy government debt at a summit meeting due to begin on Thursday.
On Monday, German Chancellor Angel Merkel quashed hopes that the euro zone could issue joint euro bonds, saying the idea was "economically wrong" and "counterproductive."
Meanwhile, rating’s agency Moody’s downgraded 28 Spanish banks on Monday, amid concerns over Madrid’s ability to support its banking sector.
Spain’s government formally requested aid of up to EUR100 billion for its banking sector from its euro zone partners on Monday. The request came after the results of an independent audit last week indicated that Madrid would need a rescue package of as much as EUR62 billion to bailout its banks.
Adding to the gloom, Fitch Ratings on Monday downgraded Cyprus to "junk" status, citing the amount of rescue money that would be needed to bail out its banks which are heavily exposed to the troubled Greek economy.
In Tokyo, the Nikkei was dragged lower by losses in exporters, which came under pressure from a rising yen.
Shares in automakers Mazda and Honda dropped 1.9% and 1.55% respectively, while electronics manufacturers Sony and Sharp each traded down 2.9%.
Shares in Nippon Electric Glass tumbled 7.8% after cutting its net-income projection to zero from a previous estimate of profits between JPY500 million and JPY 3.5 billion, citing a drop in the value of investment securities.
Elsewhere, shares in Australia were weighed by losses in mining firms, which have been under pressure in recent sessions amid concerns over a slowdown in global demand for raw materials.
BHP Billiton and Rio Tinto slumped 1.45% and 1.15% respectively, while oil drillers Woodside Petroleum and Santos lost 1.4% apiece.
On the upside, shares in troubled retailer Billabong climbed 6.25%, a day after losing nearly half of its value, after a media report saying the firm's top shareholder was open to another takeover offer after rejecting an approach earlier this year.
Meanwhile, shares in Hong Kong bucked the regional trend, amid growing expectations for near-term stimulus from Beijing.
State-run newspaper China Securities Journal reported Monday that Beijing may take measures to boost liquidity and lending to support growth in the world’s second largest economy.
Shares in lenders were mixed, with Bank of China Hong Kong gaining 0.75%, HSBC Holdings added 0.4%, while Industrial and Commercial Bank of China slumped 0.5%.
Looking ahead, the outlook for European stock markets was mildly upbeat, but sentiment was expected to remain fragile amid doubts over whether an upcoming European Union summit will result in fresh measures to tackle the region’s debt crisis.
The EURO STOXX 50 futures pointed to a gain of 0.2%, France’s CAC 40 futures rose 0.25%, London’s FTSE 100 futures advanced 0.25%, while Germany's DAX futures pointed to a gain of 0.4% at the open.
Later in the day, the U.S. was to release industry data on house price inflation, as well as a report on consumer confidence.
Mounting concerns over the health of the global economy further weighed on regional equities.
During late Asian trade, Hong Kong's Hang Seng Index added 0.3%, Australia’s ASX/200 Index shed 0.4%, while Japan’s Nikkei 225 Index declined 0.8%.
Market sentiment soured amid growing skepticism over whether European leaders will make any progress towards greater fiscal integration and allowing the bloc's rescue funds to buy government debt at a summit meeting due to begin on Thursday.
On Monday, German Chancellor Angel Merkel quashed hopes that the euro zone could issue joint euro bonds, saying the idea was "economically wrong" and "counterproductive."
Meanwhile, rating’s agency Moody’s downgraded 28 Spanish banks on Monday, amid concerns over Madrid’s ability to support its banking sector.
Spain’s government formally requested aid of up to EUR100 billion for its banking sector from its euro zone partners on Monday. The request came after the results of an independent audit last week indicated that Madrid would need a rescue package of as much as EUR62 billion to bailout its banks.
Adding to the gloom, Fitch Ratings on Monday downgraded Cyprus to "junk" status, citing the amount of rescue money that would be needed to bail out its banks which are heavily exposed to the troubled Greek economy.
In Tokyo, the Nikkei was dragged lower by losses in exporters, which came under pressure from a rising yen.
Shares in automakers Mazda and Honda dropped 1.9% and 1.55% respectively, while electronics manufacturers Sony and Sharp each traded down 2.9%.
Shares in Nippon Electric Glass tumbled 7.8% after cutting its net-income projection to zero from a previous estimate of profits between JPY500 million and JPY 3.5 billion, citing a drop in the value of investment securities.
Elsewhere, shares in Australia were weighed by losses in mining firms, which have been under pressure in recent sessions amid concerns over a slowdown in global demand for raw materials.
BHP Billiton and Rio Tinto slumped 1.45% and 1.15% respectively, while oil drillers Woodside Petroleum and Santos lost 1.4% apiece.
On the upside, shares in troubled retailer Billabong climbed 6.25%, a day after losing nearly half of its value, after a media report saying the firm's top shareholder was open to another takeover offer after rejecting an approach earlier this year.
Meanwhile, shares in Hong Kong bucked the regional trend, amid growing expectations for near-term stimulus from Beijing.
State-run newspaper China Securities Journal reported Monday that Beijing may take measures to boost liquidity and lending to support growth in the world’s second largest economy.
Shares in lenders were mixed, with Bank of China Hong Kong gaining 0.75%, HSBC Holdings added 0.4%, while Industrial and Commercial Bank of China slumped 0.5%.
Looking ahead, the outlook for European stock markets was mildly upbeat, but sentiment was expected to remain fragile amid doubts over whether an upcoming European Union summit will result in fresh measures to tackle the region’s debt crisis.
The EURO STOXX 50 futures pointed to a gain of 0.2%, France’s CAC 40 futures rose 0.25%, London’s FTSE 100 futures advanced 0.25%, while Germany's DAX futures pointed to a gain of 0.4% at the open.
Later in the day, the U.S. was to release industry data on house price inflation, as well as a report on consumer confidence.