HONG KONG—Asian markets fell Thursday on lingering eurozone debt fears and following losses on Wall Street as the Federal Reserve warned that the US economy was still weak.
Traders nervously awaited a weekend summit of European Union leaders, amid concerns that a plan to tackle the region’s fiscal crisis would not be far-reaching enough.
Tokyo closed 1.03 percent, or 90.39 points, lower at 8,682.15, Sydney fell 1.63 percent, or 68.8 points, to 4,144.9 and Seoul closed 2.74 percent down, or 50.83 points, at 1,805.09.
Hong Kong closed 1.78 percent, or 326.12 points, down at 17,983.10 and Shanghai lost 1.94 percent, or 46.14 points, to 2,331.37.
Many investors have stayed away from the markets, unsure about the future of the eurozone due to what they consider weak leadership.
An announcement last week from France and Germany that they had a plan to address the debt problem sent global shares soaring.
But traders have become cautious as details have been lacking and EU officials have given conflicting messages.
A report by Britain’s Guardian newspaper saying France and Germany had agreed to more than quadruple the European Financial Stability Facility (EFSF) sent shares higher Wednesday.
But by the end of the day doubts set in again as reports emerged that any changes to the rescue fund were still being discussed.
Adding to weak sentiment was news officials have decided against plans to convert the EFSF into a bond insurer.
“Generally markets are still pretty nervous about Europe,” said CBA Institutional Equities head of sales Justin Rooney in Sydney.
And Auckland-based HiFX senior trader Stuart Ive told Dow Jones Newswires of the summit: “Ultimately, I think the market is going to end up being pretty disappointed with whatever they put together.
“They will come through with something but it’s not going to be what the market is looking for. It certainly won’t be a solution to the whole thing and we will get risk aversion coming back.”
Adding to downside pressure was the Fed’s “Beige Book” September report on the world’s biggest economy, which said while there was still growth in all areas “many districts described the pace of growth as ‘modest’ or ‘slight.'”
It said business contacts “generally noted weaker or less certain outlooks for business conditions.”
Wall Street reacted by closing in the red.
The Dow lost 0.63 percent, the S&P 500 shed 1.26 percent and the tech-heavy Nasdaq dived 2.01 percent.
European stock markets slid in early trade Thursday, with London’s benchmark FTSE 100 index off 1.29 percent to 5,380.19 points and Frankfurt’s DAX 30 losing 1.34 percent to 5,834.42 points. In Paris, the CAC 40 retreated 1.18 percent to 3,118.07.
On currency markets, the euro bought $1.3806, up from $1.3719, while it sat at 106.07 yen against 105.22 yen.
The dollar changed hands at 76.82 yen, from 76.70 yen.
Oil prices rose with New York’s main contract, West Texas Intermediate for delivery in November, up 69 cents to $86.64 a barrel. Brent North Sea crude for December rose 63 cents at $108.94.
By 1100 GMT, gold was trading at $1,624.83 an ounce, up from $1,619.25 earlier Thursday.
In other markets:
— Taipei lost 1.48 percent, or 109.05 points, to end at 7,244.32.
Hon Hai shed 2.42 percent to Tw$72.7 while TSMC was 1.41 percent lower to Tw$69.7.
— Singapore’s Straits Times Index closed down 0.96 percent to 2,694.01 points.
Singapore Airlines fell 1.36 percent to Sg$10.92 and DBS Group Holdings eased 2.73 percent to Sg$11.76.
— Indian shares fell 0.87 percent, or 148.45 points, to 16,936.89.
India’s top property firm DLF fell 3.34 percent to 231.2 rupees while the largest private bank ICICI Bank closed down 2.89 percent to 878.45.
— Manila dipped 0.55 percent, or 22.98 points, to 4,170.57.
Ayala Land dropped 0.50 percent to 15.90 pesos and Philippine Long Distance Telephone rose 0.09 percent to 2,216 pesos, while Alliance Global Group added 0.20 percent to 10.14 pesos.
— Bangkok fell 3.10 percent, or 29.09 points, to close at 909.10.
Banpu lost 24 baht to 578, while Siam Cement closed 10 baht lower to 288.
— Indonesian shares fell 62.53 points, or 1.70 percent, to 3,622.78.
— Kuala Lumpur shares slipped 0.62 percent, or 9.07 points, to end at 1,441.18.
Financial firm RHB Capital fell 0.8 percent at 7.14 ringgit as mobile operator Maxis slid 0.7 percent to 5.31 while glove maker Top Glove climbed 0.2 percent to 4.13 ringgit.
— Wellington fell 0.31 percent, or 10.26 points, to 3,289.77.
Fletcher Building lost 0.8 percent to close at NZ$6.34 and Air New Zealand shed 1.0 percent to NZ$1.04.