By Dow Jones Newswire
Asian stocks fell Wednesday taking their cues from Tuesday declines in Europe and the U.S. on fears that Italy could go months more without a government or eventually succeed in dropping the euro.
Japan’s stocks bore the brunt in Asia. The Nikkei /zigman2/quotes/210597971/delayed JP:NIK +0.47% skidded 1.5%, hit by a strengthened yen and the overnight surge in Treasurys prices, with policy-sensitive two-year /zigman2/quotes/211347045/realtime BX:TMUBMUSD02Y +2.68% after the holiday weekend logging their biggest one-day drop since 2009. Life insurers were down sharply, with Dai-ichi Life Holdings /zigman2/quotes/208507587/delayed JP:8750 +2.46% and T&D Holdings /zigman2/quotes/208425761/delayed JP:8795 +2.48% each falling more than 3%.
Export-reliant companies were also seeing strong stock drops as the safe-haven yen continued to rebound. Honda /zigman2/quotes/200490352/delayed JP:7267 +1.16% , Sony /zigman2/quotes/201361720/delayed JP:6758 -0.88% and Panasonic /zigman2/quotes/201785256/delayed JP:6752 +2.04% were all sharply down.
Declines were spread across Asian markets. South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 -0.05% dropped around 2%, as did stocks in Shanghai /zigman2/quotes/210598127/delayed CN:SHCOMP -1.99% , down 2.5%, and Singapore /zigman2/quotes/210597985/delayed SG:STI -0.25% , dropping 2.1%, while Hong Kong stocks /zigman2/quotes/210598030/delayed HK:HSI -0.19% were down 1.4%. Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -0.35% only slipped 0.5%, while New Zealand’s NZX 50 /zigman2/quotes/211587880/delayed NZ:NZ50GR -1.56% was slightly higher.