Asian markets are trading mostly in red in early deals on Wednesday, extending a global sell off, as the political turmoil in Italy and its impact on the long-term health of the euro zone weighed on investors’ sentiments. Markets fear that a snap election in Italy will turn into referendum on the country's euro membership. Worries about renewed trade tensions between the US and China also weighed on the markets. Japan’s Nikkei share average tumbled to six-week lows after political turmoil in Italy sparked concerns about the stability of the euro zone, hurting most sectors on the board. Meanwhile, China and Hong Kong stocks fell, tracking a global selloff as Italy’s political crisis knocked sentiments, and as trade war fears resurfaced after the United States said it would continue trade actions against China. Among the other Asian markets, Taiwan, Hong Kong, South Korea and Singapore are lower. Bucking the trend, Indonesia is in positive territory. Markets in Malaysia remain closed.
Nikkei 225 dipped 337.35 points or 1.51% to 22,021.08, Hang Seng contracted 430.11 points or 1.41% to 30,054.47, Taiwan Weighted declined 132.55 points or 1.21% to 10,831.57, Shanghai Composite slipped 55.38 points or 1.77% to 3,065.08, KOSPI Index decreased 42.66 points or 1.74% to 2,414.59, and Straits Times down by 69.73 points or 1.98% to 3,448.75.
On the flip side, Jakarta Composite was up by 13.21 points or 0.22% to 6,081.54.
