Investing.com - Asian stock markets tumbled on Tuesday, with markets in Japan falling to an eight-week low as ongoing uncertainty over when the Federal Reserve plans to taper its stimulus program weighed on sentiment.
Investors remained cautious ahead of the minutes of the Fed's July meeting, due out on Wednesday, for further indications as to when the central bank may start to unwind its USD85 billion-a-month asset purchase program.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of global equities.
During late Asian trade, Hong Kong's Hang Seng Index was down 1.7%, Australia’s ASX/200 Index ended 0.7% lower, while Japan’s Nikkei 225 Index closed down 2.6%.
In Tokyo, the Nikkei fell to the lowest level since June 28 as the yen weakened strengthened the U.S. dollar, weighing on sentiment.
USD/JPY fell to hit a session low of 97.17, moving off the previous session’s high of 98.11. A stronger yen reduces the value of overseas income at Japanese companies when repatriated, dampening the outlook for export earnings.
Automakers Toyota and Honda saw shares drop 2.5% and 4.1% respectively, while Sony and Sharp fell 2.4% and 1.3%.
Japanese megabanks were also lower with shares of the nation’s largest lender Mitsubishi UFJ Financial Group shedding 1.5%, while Mizuho Financial Group and Nomura Holdings declined 1.5% and 2.1% respectively.
Index heavyweights Fast Retailing and Softbank saw shares drop 3.3% and 1.1% respectively.
Elsewhere, in Australia, the benchmark ASX/200 Index ended at the lowest level since August 12.
Rio Tinto and BHP Billiton lost 1% and 1.4% respectively, while Sundance Resources and Newcrest Mining slumped 3%.
In earnings news, insurance giant QBE Insurance Group plunged 5.5% after reporting a lower profit and cutting its revenue outlook.
Meanwhile, in Hong Kong, the Hang Seng fell to a one-week low, as raw material producers declined after oil and metal prices retreated in New York on Monday.
Oil majors PetroChina and CNOOC lost 2.8% 1.2%, while Jiangxi Copper Company and Zijin Mining Group dropped 4.4% and 5% respectively.
Looking ahead, European stock market futures pointed to a lower open, amid uncertainty over the timing of possible tapering by the Federal Reserve.
The EURO STOXX 50 futures pointed to a loss of 0.6% at the open, France’s CAC 40 futures shed 0.5%, London’s FTSE 100 futures pointed to a decline of 0.6%, while Germany's DAX futures pointed to a loss 0.7% at the open.
In Germany, official data on Tuesday showed that producer price inflation dipped 0.1% in July from a month earlier and was 0.5% higher on a year-over-year basis. Economists had forecast a 0.2% month-over-month increase and a 0.7% annual gain.
Investors remained cautious ahead of the minutes of the Fed's July meeting, due out on Wednesday, for further indications as to when the central bank may start to unwind its USD85 billion-a-month asset purchase program.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of global equities.
During late Asian trade, Hong Kong's Hang Seng Index was down 1.7%, Australia’s ASX/200 Index ended 0.7% lower, while Japan’s Nikkei 225 Index closed down 2.6%.
In Tokyo, the Nikkei fell to the lowest level since June 28 as the yen weakened strengthened the U.S. dollar, weighing on sentiment.
USD/JPY fell to hit a session low of 97.17, moving off the previous session’s high of 98.11. A stronger yen reduces the value of overseas income at Japanese companies when repatriated, dampening the outlook for export earnings.
Automakers Toyota and Honda saw shares drop 2.5% and 4.1% respectively, while Sony and Sharp fell 2.4% and 1.3%.
Japanese megabanks were also lower with shares of the nation’s largest lender Mitsubishi UFJ Financial Group shedding 1.5%, while Mizuho Financial Group and Nomura Holdings declined 1.5% and 2.1% respectively.
Index heavyweights Fast Retailing and Softbank saw shares drop 3.3% and 1.1% respectively.
Elsewhere, in Australia, the benchmark ASX/200 Index ended at the lowest level since August 12.
Rio Tinto and BHP Billiton lost 1% and 1.4% respectively, while Sundance Resources and Newcrest Mining slumped 3%.
In earnings news, insurance giant QBE Insurance Group plunged 5.5% after reporting a lower profit and cutting its revenue outlook.
Meanwhile, in Hong Kong, the Hang Seng fell to a one-week low, as raw material producers declined after oil and metal prices retreated in New York on Monday.
Oil majors PetroChina and CNOOC lost 2.8% 1.2%, while Jiangxi Copper Company and Zijin Mining Group dropped 4.4% and 5% respectively.
Looking ahead, European stock market futures pointed to a lower open, amid uncertainty over the timing of possible tapering by the Federal Reserve.
The EURO STOXX 50 futures pointed to a loss of 0.6% at the open, France’s CAC 40 futures shed 0.5%, London’s FTSE 100 futures pointed to a decline of 0.6%, while Germany's DAX futures pointed to a loss 0.7% at the open.
In Germany, official data on Tuesday showed that producer price inflation dipped 0.1% in July from a month earlier and was 0.5% higher on a year-over-year basis. Economists had forecast a 0.2% month-over-month increase and a 0.7% annual gain.