Asian markets resume southward journey on Wednesday

After witnessing two days of rally in previous two sessions, sentiments in the Asian region again turned bearish and most of the Asian counters snapped the day’s trade in the negative terrain on Wednesday on increasing worries that Spain could be forced into seeking a bailout. Moreover, third downgrade of Spain’s credit rating in less than a month by Egan-Jones Ratings also prompted investors to take profits off the table. Adding fuel to the fire, Chinese benchmark edged lower after some of the media reports indicated that Beijing will not provide another massive stimulus.

Meanwhile, Seoul benchmark edged lower on to snap its three-day winning streak while, Japanese Nikkei too edged down, pressured by mounting worries over Spain’s ailing banks. Moreover, Hong Kong shares fell nearly two percent, dragged lower by sectors most sensitive to the Chinese economy on speculation that, China government dashed earlier hopes of introducing fresh stimulus measures to boost its economy.