Investing.com – Asian stock markets were broadly lower on Tuesday, as a downgrade of Italy’s credit rating added to fears over the euro zone’s ongoing sovereign debt crisis.
During late Asian trade, Hong Kong's Hang Seng Index fell 0.55%, Australia’s ASX/200 Index dropped 1.1%, while Japan’s Nikkei 225 Index tumbled 1.6%.
Ratings agency Standard & Poor’s downgraded Italy’s sovereign credit rating by one notch to A/A-1 and kept its outlook on negative, citing weakening economic growth prospects and higher-than-expected levels of government debt.
The downgrade, coupled with lingering fears over a potential Greek default pressured shares in the financial sector.
Japan’s largest lender Mitsubishi UFJ Financial Group dropped 2.9%, Sumitomo Mitsui Financial Group fell 2.75%, while the nation’s third largest lender Mizuho Financial Group slumped 1.75%.
Shares in Japanese exporters with high exposure to Europe also contributed to losses, with automakers Honda and Nissan retreating 3.1% and 3.5% respectively, while consumer electronics giant Sony tumbled 4.05%.
Elsewhere, in Hong Kong, shares in lenders came under pressure amid reports that the Bank of China has halted foreign exchange swaps with several European banks due to the debt crisis in the euro zone.
Industrial and Commercial Bank of China shares fell 1.5%, China Construction Bank shares slumped 0.9%, while Hong Kong-listed shares of Bank of China declined 0.75%.
In Australia, shares in raw material producers led losses after crude oil and metal prices declined on the New York Mercantile Exchange, dampening earnings prospects for miners and energy explorers.
Mining giants BHP Billiton and Rio Tinto fell 2.2% and 1.9% respectively.
Meanwhile, the outlook for European stock markets was downbeat. The EURO STOXX 50 futures pointed to a drop of 0.8%, France’s CAC 40 futures shed 0.85%, the FTSE 100 futures slumped 0.45%, while Germany's DAX futures pointed to a loss of 0.9%.
Later in the day, the ZEW Centre for Economic Research was to release reports on economic sentiment in Germany and also in the wider single currency bloc, while the U.S. was to publish government data on building permits and a report on housing starts.
During late Asian trade, Hong Kong's Hang Seng Index fell 0.55%, Australia’s ASX/200 Index dropped 1.1%, while Japan’s Nikkei 225 Index tumbled 1.6%.
Ratings agency Standard & Poor’s downgraded Italy’s sovereign credit rating by one notch to A/A-1 and kept its outlook on negative, citing weakening economic growth prospects and higher-than-expected levels of government debt.
The downgrade, coupled with lingering fears over a potential Greek default pressured shares in the financial sector.
Japan’s largest lender Mitsubishi UFJ Financial Group dropped 2.9%, Sumitomo Mitsui Financial Group fell 2.75%, while the nation’s third largest lender Mizuho Financial Group slumped 1.75%.
Shares in Japanese exporters with high exposure to Europe also contributed to losses, with automakers Honda and Nissan retreating 3.1% and 3.5% respectively, while consumer electronics giant Sony tumbled 4.05%.
Elsewhere, in Hong Kong, shares in lenders came under pressure amid reports that the Bank of China has halted foreign exchange swaps with several European banks due to the debt crisis in the euro zone.
Industrial and Commercial Bank of China shares fell 1.5%, China Construction Bank shares slumped 0.9%, while Hong Kong-listed shares of Bank of China declined 0.75%.
In Australia, shares in raw material producers led losses after crude oil and metal prices declined on the New York Mercantile Exchange, dampening earnings prospects for miners and energy explorers.
Mining giants BHP Billiton and Rio Tinto fell 2.2% and 1.9% respectively.
Meanwhile, the outlook for European stock markets was downbeat. The EURO STOXX 50 futures pointed to a drop of 0.8%, France’s CAC 40 futures shed 0.85%, the FTSE 100 futures slumped 0.45%, while Germany's DAX futures pointed to a loss of 0.9%.
Later in the day, the ZEW Centre for Economic Research was to release reports on economic sentiment in Germany and also in the wider single currency bloc, while the U.S. was to publish government data on building permits and a report on housing starts.