Investors chat as they look at the stock price monitor at a private securities company in Shanghai, China. AP
Hong Kong – Asian markets mostly fell further on Wednesday following heavy losses in Europe and the United States on fresh eurozone debt worries and concerns over the global recovery.
The yen held on to most of its advances against the euro and dollar in New York after traders had shifted back to its safety, while oil prices rebounded after posting heavy losses late Tuesday due to an expected fall in demand.
Tokyo slipped 0.83 percent, or 79.28 points, to 9,458.74 — the seventh straight loss — and Sydney fell 1.07 percent, or 45.9 points, to 4,246.4.
In afternoon trade Hong Kong was 1.18 percent lower and Shanghai gave up 0.60 percent.
Seoul and Kuala Lumpur were closed for public holidays.
Europe’s debt woes returned as Spanish benchmark 10-year bond yields spiked at 5.94 percent — their highest levels since December — after the government unveiled further swingeing cuts on top of last month’s stiff austerity budget.
Markets have become worried that the severity of the cuts could fuel a recession, in turn hitting the country’s ability to repay its debts.
“Obviously when the European debt crisis comes back into focus it is never a good sign for equity markets,” Sydney-based Ben Le Brun, market analyst at OptionsXpress, said in a note, according to Dow Jones Newswires.
Global markets were hit by the scare. On Wall Street the Dow saw its biggest drop of the year, shedding 1.65 percent, the S&P 500 slid 1.71 percent and the tech-rich Nasdaq fell 1.83 percent.
And in Europe London’s FTSE 100 tumbled 2.24 percent, the Frankfurt DAX 30 lost 2.49 percent and in Paris the CAC 40 fell 3.08 percent.
In Milan the FTSE Mib index slumped 4.98 percent while Madrid skidded 2.96 percent.
The yen benefited from the nervousness. The dollar slipped to 80.84 yen in Wednesday Tokyo trade, from 81.49 yen in New York Tuesday.
The euro rose to $1.3101 in Tokyo from $1.3084 in New York, and to 105.90 yen from 105.49 yen, although it was well off its 106.91 yen and $1.3130 in Asia on Tuesday.
Markets were already under pressure amid fears over the global economy after US jobs growth in March came in below forecasts and much lower than previous months, while China has released a string of results pointing to a slowdown.
Demand fears outweighed tensions in the Middle East between the West and Iran late on Wednesday as oil prices plunged but in afternoon Asian trade prices bounced back.
New York’s main contract, West Texas Intermediate crude for delivery in May was up 29 cents to $101.31 per barrel while Brent North Sea crude for May gained 30 cents to $120.18 in the afternoon.
WTI had fallen $1.44 in New York while Brent had dived $2.79.
Gold was at $1,659.30 an ounce at 0600 GMT, compared with $1,643.60 late Tuesday.
In other markets:
— Taipei gained 0.21 percent, or 15.99 points, to 7,656.67.
Hon Hai Precision added 3.18 percent to Tw$113.5 while Chunghwa Telecom was 0.11 percent lower at Tw$90.4.
— Wellington fell 0.28 percent, or 9.72 points, to 3,465.39.
Fisher & Paykel Healthcare was down 5.6 percent at NZ$2.20 while Fletcher Building lost 2.0 percent to NZ$6.02 and Telecom added 0.81 percent to HK$2.50.