Asia report: Markets finish lower as global concerns escalate

Markets in Asia finished in the red on Wednesday, as concerns around the state of the global economy gathered steam following a woeful session on Wall Street overnight.

In Japan, the Nikkei 225 was down 0.49% at 21,778.61, as the yen strengthened 0.11% against the dollar, to last trade at JPY 107.63.

Of the major components on the benchmark index, automation specialist Fanuc was down 2.22% and technology conglomerate SoftBank Group lost 2.67%, while fashion firm Fast Retailing rose 0.41%.

The broader Topix index ended its session down 0.42% in Tokyo, closing the day at 1,596.29.

Trading in mainland China remained closed for a public holiday commemorating the anniversary of communist rule on Wednesday.

South Korea’s Kospi was down 1.95% at 2,031.91, while the Hang Seng Index in Hong Kong was 0.19% weaker at 26,042.69, returning from a holiday on Tuesday.

Both of the blue-chip technology stocks were in the red in Seoul, with Samsung Electronics down 2.56% and SK Hynix 3.05% lower.

Tensions were high in Korea, after Pyongyang fired a ballistic missile towards the sea, according to the South Korean military.

The reported test came just hours after the hermit state suggested it would resume nuclear talks with the United States later this week.

Investor concern was elevated by the release of the worst manufacturing data in the US for a decade overnight, which showed manufacturing in the country weakened for the second month in a row in September.

Analysts were quick to suggest that president Donald Trump’s ongoing trade war with China had put the kibosh on both factory activity and business confidence.

“Investors have become anxious about the health of the global economic growth because yesterday's reading came on the heels of unsatisfactory figures from Europe which we saw earlier this week,” said ThinkMarkets analyst Naeem Aslam.

Oil prices were mixed as the region went to bed, with Brent crude last down 0.39% at $58.66 per barrel, and West Texas Intermediate rising 0.17% to $53.71.

In Australia, the S&P/ASX 200 was 1.53% below the waterline by the close of play, ending the day at 6,639.90.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was off 0.4% to 10,951.64.

Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.37% at AUD 1.4972, and the Kiwi retreating 0.24% to NZD 1.6053.