Investing.com - Asian stock markets plunged sharply during late Asian trade on Thursday, following the release of disappointing Chinese manufacturing data and amid indications the Federal Reserve said it could start scaling back its bond buying program by the end of the year.
During late Asian trade, Hong Kong's Hang Seng Index was down 2.6%, Australia’s ASX/200 Index ended 2.1% lower, while Japan’s Nikkei 225 Index ended down 2%.
Asian equities added to heavy losses after data showed that China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, fell to a nine-month low of 48.3 in June from a final reading of 49.2 in May.
The measure remains below 50.0, indicating a contraction in manufacturing activity.
Market sentiment was hard hit after Fed Chairman Ben Bernanke said the central bank could begin slowing asset purchases by the end of 2013 and wind them down completely by the middle of 2014 if the economy picks up as the central bank expects.
In Tokyo, the Nikkei came off the previous session’s one-week high, despite weakness in the yen.
USD/JPY rose to hit a session high of 97.33, the strongest level since June 11.
Real-estate shares were a particular weak spot in Japan, amid jitters over the direction of bond prices. Mitsui Fudosan lost 3.9%, while Mitsubishi Estate dropped 2.8%.
Meanwhile, in Australia, the benchmark ASX/200 Index ended sharply lower as global miners came under pressure following the weak Chinese data.
Australian commodity producers are heavily reliant on Chinese demand for raw materials.
Rio Tinto and BHP Billiton declined 3.3% and 2.6% respectively, while Fortescue Metals Group saw shares plunge 6.6%.
Elsewhere, in Hong Kong, the Hang Seng tumbled to a nine-month low amid mounting concerns over tight liquidity conditions.
The China banking sector were among the biggest drags on the index, with China Construction Bank shares dropping 4%, Industrial and Commercial Bank of China falling 3.2% and China Minsheng Bank declining 6.2%.
Looking ahead, European stock market futures pointed to a lower open, after the Federal Reserve said it could start scaling back its bond buying program by the end of the year, while weak Chinese manufacturing data also weighed.
The EURO STOXX 50 futures pointed to a loss of 1.1% at the open, France’s CAC 40 futures declined 1%, London’s FTSE 100 futures indicated a loss of 1%, while Germany's DAX futures pointed to a drop of 0.9% at the open.
The euro zone was to release preliminary data on manufacturing and service sector activity later in the day.
The U.S. was to release the weekly government report on initial jobless claims, in addition to data on existing home sales and the Philly Fed manufacturing index.
During late Asian trade, Hong Kong's Hang Seng Index was down 2.6%, Australia’s ASX/200 Index ended 2.1% lower, while Japan’s Nikkei 225 Index ended down 2%.
Asian equities added to heavy losses after data showed that China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, fell to a nine-month low of 48.3 in June from a final reading of 49.2 in May.
The measure remains below 50.0, indicating a contraction in manufacturing activity.
Market sentiment was hard hit after Fed Chairman Ben Bernanke said the central bank could begin slowing asset purchases by the end of 2013 and wind them down completely by the middle of 2014 if the economy picks up as the central bank expects.
In Tokyo, the Nikkei came off the previous session’s one-week high, despite weakness in the yen.
USD/JPY rose to hit a session high of 97.33, the strongest level since June 11.
Real-estate shares were a particular weak spot in Japan, amid jitters over the direction of bond prices. Mitsui Fudosan lost 3.9%, while Mitsubishi Estate dropped 2.8%.
Meanwhile, in Australia, the benchmark ASX/200 Index ended sharply lower as global miners came under pressure following the weak Chinese data.
Australian commodity producers are heavily reliant on Chinese demand for raw materials.
Rio Tinto and BHP Billiton declined 3.3% and 2.6% respectively, while Fortescue Metals Group saw shares plunge 6.6%.
Elsewhere, in Hong Kong, the Hang Seng tumbled to a nine-month low amid mounting concerns over tight liquidity conditions.
The China banking sector were among the biggest drags on the index, with China Construction Bank shares dropping 4%, Industrial and Commercial Bank of China falling 3.2% and China Minsheng Bank declining 6.2%.
Looking ahead, European stock market futures pointed to a lower open, after the Federal Reserve said it could start scaling back its bond buying program by the end of the year, while weak Chinese manufacturing data also weighed.
The EURO STOXX 50 futures pointed to a loss of 1.1% at the open, France’s CAC 40 futures declined 1%, London’s FTSE 100 futures indicated a loss of 1%, while Germany's DAX futures pointed to a drop of 0.9% at the open.
The euro zone was to release preliminary data on manufacturing and service sector activity later in the day.
The U.S. was to release the weekly government report on initial jobless claims, in addition to data on existing home sales and the Philly Fed manufacturing index.