A man walks by an electronic stock board of a securities firm in Tokyo, Wednesday, Aug. 6, 2014. Worries over Russian troops amassing near the Ukraine border sent most Asian stock markets lower Wednesday. AP PHOTO/EUGENE HOSHIKO
HONG KONG–Asian stocks dropped Wednesday, following a sharp fall on Wall Street over fears of a market correction and concerns the conflict in Ukraine could escalate.
Analysts cited comments by Polish Foreign Minister Radoslaw Sikorski, who said Russia had increased its military presence on the Ukraine border, suggesting the situation could deteriorate.
Tokyo’s Nikkei fell 1.05 percent, or 160.52 points, to close at 15,159.79, Sydney dropped 0.12 percent, or 6.6 points, to finish at 5,512.0, and Seoul shed 0.27 percent, or 5.53 points, to 2,060.73.
Hong Kong finished down 0.26 , while Shanghai slipped 0.11 percent, or 2.48 points, to close at 2,217.47. Shenzhen rose 0.39 percent, or 4.57 points, to end at 1,177.33.
“If Poland is indeed right that Russia is about to increase its presence in the east of Ukraine, buyers of all things risk will disappear fast as this is an indefinable outcome for markets,” IG strategist Evan Lucas told Dow Jones Newswires.
CMC Markets added: “The potential of an invasion in Ukraine sent investors scurrying for the exits as they find the slightest excuse to scale off profits.”
In the US, the Dow Jones Industrial Average dropped 139.81 points (0.84 percent) to 16,429.47.
The broad-based S&P 500 fell 18.78 (0.97 percent) to 1,920.21, while the Nasdaq Composite Index sank 31.05 (0.71 percent) to 4,352.84.
The drop follows heavy losses at the end of July, which saw the Dow shed its gains for the year in its worst week since January, and the S&P 500 record its biggest weekly decline since mid-2012.
Market correction
Mace Blicksilver, director at Marblehead Asset Management, said of Tuesday’s fall: “It’s continuing the trend from last week.”
He added that some pundits have predicted a possible drop of 10 percent or more in stocks. US stocks have avoided a correction on this scale for more than two years.
In Tokyo, the Nikkei was also affected by a slump in shares in SoftBank–one of the biggest constituents–which fell 3.50 percent to 6,972.0 yen ($68).
The drop followed reports the Japanese carrier’s US unit Sprint is ending its pursuit of rival T-Mobile due to concerns about regulatory approval.
On foreign exchange markets Wednesday, the euro was hovering near an eight-month low against the dollar in Asia on speculation that the European Central Bank (ECB) would hint at further stimulus after a policy meeting.
The euro bought $1.3367 and 137.08 yen in Tokyo afternoon trade against $1.3369 and 137.20 yen in New York late Tuesday.
The dollar was changing hands at 102.59 yen in Tokyo trade compared with 102.62 yen in New York trade Tuesday.
In oil trade, the benchmark West Texas Intermediate (WTI) for September delivery rose 10 cents to $97.48 while Brent crude gained 25 cents to $104.86 in afternoon trade.
Gold fetched $1,293.88 an ounce by 1210 GMT compared with $1,292.10 late Tuesday.
In other markets:
— Jakarta ended down 1 percent, or 50.86 points, at 5,058.23.
Car maker Astra International fell 2.24 percent to 7,625 rupiah, while palm oil producer Astra Agro Lestari gained 1.43 percent to 26,650 rupiah.
— Singapore closed down 0.22 percent, or 7.44 points, to 3,320.23.
Real estate developer Capitaland eased 2.04 percent to Sg$3.37 while Singapore Telecommunications rose 0.26 percent to Sg$3.93.
— Bangkok fell 0.43 percent, or 6.57 points, to 1,522.41.
Bumrungrad Hospital gained 4.92 percent to 128 baht, while oil company PTT dropped 0.91 percent to 325 baht.
— Kuala Lumpur fell 6.77 points, or 0.36 percent, to close at 1,869.92.
Malayan Banking lost 0.10 percent to 9.97 ringgit, Public Bank eased 0.40 percent to 19.80 while Malaysian Airline System gained 2.13 percent to 0.24 ringgit.
— Mumbai retreated 0.94 percent, or 242.74 points to 25,665.27.
Bhushan Steel dropped 20.00 percent to 304.60 rupees, while Apollo Tyres fell 7.15 percent to 171.95 rupees.
— Manila lost 0.36 percent, or 25.03 points, to 6,948.97.
Philippine Long Distance Telephone slumped 2.10 percent to 3,084 pesos, while Alliance Global eased 0.18 percent to 27.60 pesos.
— Taipei edged up 0.03 percent, or 2.53 points, to 9,143.97.
TSMC rose 0.84 percent to Tw$120.5 while Acer fell 2.06 percent to Tw$23.75.
— Wellington fell 0.23 percent, or 11.94 points, to 5,092.23.
Contact Energy down 0.90 percent at NZ$5.50 and Air New Zealand up 1.04 percent at NZ$1.94.–Liz Thomas with Dow Jones Newswires