Investing.com - Asian stock markets were sharply lower on Thursday, with markets in Japan plunging to a one-month low as the yen strengthened against the U.S. dollar while lingering concerns over an increase in the yields on Japanese government debt also weighed.
The index is now down 14% since last Thursday’s 7% drop, entering correction territory.
Market sentiment was further dampened amid speculation the Federal Reserve will taper its bond-buying program in the coming months.
During late Asian trade, Hong Kong's Hang Seng Index was down 0.5%, Australia’s ASX/200 Index ended 0.9% lower, while Japan’s Nikkei 225 Index plunged 5.2%.
In Tokyo, the Nikkei dropped to a one-month low as traders eyed movements in the yen and in the Japanese government bond market.
USD/JPY traded at 100.50, moving off the previous session’s high of 102.51. A stronger yen reduces the value of overseas income at Japanese companies when repatriated, dampening the outlook for export earnings.
Automakers Toyota and Honda dropped 2.3% and 3.4% respectively, while Sony and Sharp fell 2.9% and 7.3% apiece.
Japanese megabanks also contributed to losses, with shares in the nation’s largest lender Mitsubishi UFJ Financial Group dropping 3.1%, while Sumitomo Mitsui Financial Group and Mizuno Financial Group retreated 3.7% and 3% respectively.
Elsewhere, in Australia, the benchmark ASX/200 Index ended lower as miners came under pressure amid concerns over the global economic outlook.
Mining heavyweights BHP Billiton and Rio Tinto lost 1.6% and 1.7% respectively, while Fortescue Metals Group sank 5.1%.
The big four banks were mostly lower, with shares in National Australia Bank tumbling 4.3% as its shares traded without dividend rights.
Meanwhile, in Hong Kong, the Hang Seng edged lower for the second consecutive day as market players looked ahead to further clues regarding the strength of the Chinese economy.
The next slice of Chinese economic data to come out will be the official purchasing managers' index, due on Saturday.
Property developers were mostly lower, with shares in Sino Land dropping 1.2%, while Sun Hung Kai Properties declined 2.2%.
Looking ahead, European stock market futures pointed to a lower open.
The EURO STOXX 50 futures pointed to a loss of 0.8% at the open, France’s CAC 40 futures shed 0.7%, London’s FTSE 100 futures retreated 0.6%, while Germany's DAX futures pointed to a drop of 0.7% at the open.
Investors were looking ahead to the weekly U.S. report on jobless claims later in the global day amid ongoing speculation over whether the Federal Reserve is moving closer to scaling back its USD85 billion-a-month asset purchase program.
The index is now down 14% since last Thursday’s 7% drop, entering correction territory.
Market sentiment was further dampened amid speculation the Federal Reserve will taper its bond-buying program in the coming months.
During late Asian trade, Hong Kong's Hang Seng Index was down 0.5%, Australia’s ASX/200 Index ended 0.9% lower, while Japan’s Nikkei 225 Index plunged 5.2%.
In Tokyo, the Nikkei dropped to a one-month low as traders eyed movements in the yen and in the Japanese government bond market.
USD/JPY traded at 100.50, moving off the previous session’s high of 102.51. A stronger yen reduces the value of overseas income at Japanese companies when repatriated, dampening the outlook for export earnings.
Automakers Toyota and Honda dropped 2.3% and 3.4% respectively, while Sony and Sharp fell 2.9% and 7.3% apiece.
Japanese megabanks also contributed to losses, with shares in the nation’s largest lender Mitsubishi UFJ Financial Group dropping 3.1%, while Sumitomo Mitsui Financial Group and Mizuno Financial Group retreated 3.7% and 3% respectively.
Elsewhere, in Australia, the benchmark ASX/200 Index ended lower as miners came under pressure amid concerns over the global economic outlook.
Mining heavyweights BHP Billiton and Rio Tinto lost 1.6% and 1.7% respectively, while Fortescue Metals Group sank 5.1%.
The big four banks were mostly lower, with shares in National Australia Bank tumbling 4.3% as its shares traded without dividend rights.
Meanwhile, in Hong Kong, the Hang Seng edged lower for the second consecutive day as market players looked ahead to further clues regarding the strength of the Chinese economy.
The next slice of Chinese economic data to come out will be the official purchasing managers' index, due on Saturday.
Property developers were mostly lower, with shares in Sino Land dropping 1.2%, while Sun Hung Kai Properties declined 2.2%.
Looking ahead, European stock market futures pointed to a lower open.
The EURO STOXX 50 futures pointed to a loss of 0.8% at the open, France’s CAC 40 futures shed 0.7%, London’s FTSE 100 futures retreated 0.6%, while Germany's DAX futures pointed to a drop of 0.7% at the open.
Investors were looking ahead to the weekly U.S. report on jobless claims later in the global day amid ongoing speculation over whether the Federal Reserve is moving closer to scaling back its USD85 billion-a-month asset purchase program.