Investing.com - Asian stock markets were sharply lower in holiday-thinned trade on Wednesday, after minutes from the Federal Reserve’s most recent policy meeting suggested the bank was likely to embark on a third round of monetary easing.
During late Asian trade, Australia’s ASX/200 Index dipped 0.1%, while Japan’s Nikkei 225 Index plunged 2.3%.
Trading volume in the region was subdued as markets in mainland China and Hong Kong remained closed for a public holiday.
Minutes released Tuesday from the March meeting of the Fed's Open Market Committee indicated that the central bank was unlikely to introduce more stimulus measures to help boost the U.S. economy in the near term.
The news saw risk aversion sharpen, prompting investors to shun riskier assets, such as stocks and commodities.
In Japan, the Nikkei broke below the key psychological level of 10,000 to hit a four-week low, raising fears that the benchmark’s strong 18% rally in the first quarter was coming to and end.
Shares in the financial sector were broadly lower, with Mitsubishi UFJ Financial Group dropping 1.7%, while shares in Sumitomo Mitsui Financial Group and Mizuho Financial Group lost 1.55% a piece.
Exporters came under pressure, with consumer electronic companies Sony and Sharp tumbling 2.95% and 3.7% respectively, while shares in Toshiba retreated 3.35%.
Losses in the retail sector further weighed, with Fast Retailing plunging 5.7% after Asia’s largest apparel retailer reported disappointing March domestic same-store sales results for its Uniqlo casual-clothing chain.
Elsewhere across the sector, J. Front Retailing lost 2.85%, while shares in Takashimaya declined 2.5%.
Meanwhile, in Australia, shares declined after the nation posted a surprise trade deficit of AUD480 million in February, compared to expectations for a surplus of AUD1.0 billion, as exports of coal and metals declined significantly.
Raw material producers performed poorly, tracking commodity prices lower. Mining giants BHP Billiton and Rio Tinto fell 1.2% and 0.7% respectively, while gold miner Newcrest Mining dropped 2.25%.
Transfield Services was the biggest loser on the index, tumbling 11.65% after cutting its full-year net profit guidance to AUD105 million, down from earlier guidance of around AUD130 million, citing extreme weather.
On the upside, QBE Insurance Group jumped 3.7% after it affirmed its 2012 profit margin target and said it would hike premiums by more than 7% to cover 2011 extreme weather claims.
Looking ahead, European stock markets were set for losses at the open, as concerns that Spain will be the next country to require a bailout mounted ahead of an auction of government debt later in the day.
The EURO STOXX 50 futures pointed to loss of 0.6%, France’s CAC 40 futures shed 0.6%, London’s FTSE 100 futures edged down 0.25%, while Germany's DAX futures pointed to a loss of 0.7% at the open.
Later in the day, Germany was to release official data on retail sales. Market participants were also looking ahead to the European Central Bank’s policy meeting later in the day, although the bank was expected to leave interest rates unchanged at 1%.
Meanwhile, the U.S. was to publish a report non-farm employment change, as well as data from the Institute of Supply Management on service sector activity. In addition, U.S. Treasury Secretary Timothy Geithner was due to speak.
During late Asian trade, Australia’s ASX/200 Index dipped 0.1%, while Japan’s Nikkei 225 Index plunged 2.3%.
Trading volume in the region was subdued as markets in mainland China and Hong Kong remained closed for a public holiday.
Minutes released Tuesday from the March meeting of the Fed's Open Market Committee indicated that the central bank was unlikely to introduce more stimulus measures to help boost the U.S. economy in the near term.
The news saw risk aversion sharpen, prompting investors to shun riskier assets, such as stocks and commodities.
In Japan, the Nikkei broke below the key psychological level of 10,000 to hit a four-week low, raising fears that the benchmark’s strong 18% rally in the first quarter was coming to and end.
Shares in the financial sector were broadly lower, with Mitsubishi UFJ Financial Group dropping 1.7%, while shares in Sumitomo Mitsui Financial Group and Mizuho Financial Group lost 1.55% a piece.
Exporters came under pressure, with consumer electronic companies Sony and Sharp tumbling 2.95% and 3.7% respectively, while shares in Toshiba retreated 3.35%.
Losses in the retail sector further weighed, with Fast Retailing plunging 5.7% after Asia’s largest apparel retailer reported disappointing March domestic same-store sales results for its Uniqlo casual-clothing chain.
Elsewhere across the sector, J. Front Retailing lost 2.85%, while shares in Takashimaya declined 2.5%.
Meanwhile, in Australia, shares declined after the nation posted a surprise trade deficit of AUD480 million in February, compared to expectations for a surplus of AUD1.0 billion, as exports of coal and metals declined significantly.
Raw material producers performed poorly, tracking commodity prices lower. Mining giants BHP Billiton and Rio Tinto fell 1.2% and 0.7% respectively, while gold miner Newcrest Mining dropped 2.25%.
Transfield Services was the biggest loser on the index, tumbling 11.65% after cutting its full-year net profit guidance to AUD105 million, down from earlier guidance of around AUD130 million, citing extreme weather.
On the upside, QBE Insurance Group jumped 3.7% after it affirmed its 2012 profit margin target and said it would hike premiums by more than 7% to cover 2011 extreme weather claims.
Looking ahead, European stock markets were set for losses at the open, as concerns that Spain will be the next country to require a bailout mounted ahead of an auction of government debt later in the day.
The EURO STOXX 50 futures pointed to loss of 0.6%, France’s CAC 40 futures shed 0.6%, London’s FTSE 100 futures edged down 0.25%, while Germany's DAX futures pointed to a loss of 0.7% at the open.
Later in the day, Germany was to release official data on retail sales. Market participants were also looking ahead to the European Central Bank’s policy meeting later in the day, although the bank was expected to leave interest rates unchanged at 1%.
Meanwhile, the U.S. was to publish a report non-farm employment change, as well as data from the Institute of Supply Management on service sector activity. In addition, U.S. Treasury Secretary Timothy Geithner was due to speak.