Forex Pros – Asian stock markets posted sharp losses on Tuesday as investors focused on ongoing tensions in the Middle East and North Africa, while markets in Japan were hit after Moody’s downgraded the country’s debt outlook.
During late Asian trade, Hong Kong’s Hang Seng Index tumbled 2.19%, South Korea’s Kospi Composite dropped 1.76%, while Japan’s Nikkei 225 Index slumped 1.78%.
In Libya, scores of anti-government protesters were killed on Monday as the government attacked demonstrators and rebels claimed control of the nation’s second largest city, Benghazi.
Meanwhile, investor ratings agency Moody’s downgraded Japan’s credit rating outlook to negative from stable, citing the risk the government won’t do enough to tackle the nation’s debt burden.
Shares in Japan’s third-biggest bank Mizuho Financial Group plunged 4.05%, stocks of the nation’s largest lender Mitsubishi UFJ Financial Group tumbled 3.62%, while Sumitomo Mitsui Financial Group saw shares drop 4.54%.
In Hong Kong, shares in airliner Cathay Pacific Airways plummeted 5.56% after crude oil prices surged to a 30-month high amid fears over disruption to supplies from the Middle East.
Hong Kong-listed shares of Air China tumbled 7.86%, while China Southern Airlines saw shares plunge 7.25%.
Elsewhere, Australia’s S&P/ASX 200 Index fell 0.88% as sentiment was dented after an earthquake hit neighboring New Zealand’s second-largest city, Christchurch.
Shares in the nation’s largest insurer Insurance Australia dropped 1.89%, rival QBE Insurance saw shares slump 2.38%, while Suncorp Group saw shares slide 2.39%.
The outlook for European equity markets, meanwhile, was downbeat. The EURO STOXX 50 futures pointed to a drop of 0.56%, France’s CAC 40 futures indicated a decline of 0.55%, the FTSE 100 futures pointed to a loss of 0.49%, while Germany’s DAX futures were down 0.37%.
Later in the day, the U.S. was to publish data on consumer confidence compiled by the Conference Board as well as industry data on house prices and a report on manufacturing activity in Richmond.
ForexPros.com
