Asian stock markets slumped Wednesday as jitters spread over Italy's escalating political crisis and renewed US-China trade tensions.
In morning trading, Japan's Nikkei fell 1.8%, Hong Kong's Hang Seng slid 1.3%, and China's Shanghai Composite was down 2%.
The losses across Asia came after sharp declines Tuesday in Europe and the United States, where the Dow closed down 1.6%.
Traders in Asia said investors were exiting riskier assets such as stocks after political turmoil in Italy sparked fears over the future of the euro and the White House revived plans to slap tariffs on $50 billion worth of Chinese goods.
Italy is headed for new elections after populist politicians failed to form a government, and investors worry the result could throw the European Union into turmoil. They are demanding higher yields to hold Italian government debt.
Investors in Asia are also worried about President Donald Trump's hardening stance on trade with China. The administration announced Tuesday that it would proceed with its proposal to impose 25% tariffs on $50 billion worth of goods from China and place new limits on Chinese investments in US high-tech industries.
The decision was a surprise, coming less than two weeks after China and the United States said they had agreed to put threats of new tariffs on hold.
China's Commerce Ministry said the Trump administration's latest announcement is "obviously in violation of the consensus" reached by the two countries in recent talks.
The gloomy mood may not continue in US markets later Wednesday, though. Dow futures indicated small gains.
In morning trading, Japan's Nikkei fell 1.8%, Hong Kong's Hang Seng slid 1.3%, and China's Shanghai Composite was down 2%.
The losses across Asia came after sharp declines Tuesday in Europe and the United States, where the Dow closed down 1.6%.
Traders in Asia said investors were exiting riskier assets such as stocks after political turmoil in Italy sparked fears over the future of the euro and the White House revived plans to slap tariffs on $50 billion worth of Chinese goods.
Italy is headed for new elections after populist politicians failed to form a government, and investors worry the result could throw the European Union into turmoil. They are demanding higher yields to hold Italian government debt.
Investors in Asia are also worried about President Donald Trump's hardening stance on trade with China. The administration announced Tuesday that it would proceed with its proposal to impose 25% tariffs on $50 billion worth of goods from China and place new limits on Chinese investments in US high-tech industries.
The decision was a surprise, coming less than two weeks after China and the United States said they had agreed to put threats of new tariffs on hold.
China's Commerce Ministry said the Trump administration's latest announcement is "obviously in violation of the consensus" reached by the two countries in recent talks.
The gloomy mood may not continue in US markets later Wednesday, though. Dow futures indicated small gains.
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