Japan’s Nikkei stock index (.N225) ended down 1.2 percent, snapping its six-day rising streak and pulling away from Tuesday’s almost four-week closing high as the Apple news reverberated on related tech shares.
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MSCI’s broadest index of Asia-Pacific shares outside Japan extended losses and was down about 1.1 percent.
The drop in commodity prices has not been kind to commodity currencies such as the Canadian dollar, which retreated overnight to a six-year low of C$1.3053 against the US dollar.
The dollar index rose about 0.1 percent to 97.392 after rising as high as 98.151 in the previous session, its highest level since late April.
S&P 500 mini futures (ESc1) were down about 0.4 percent from late US levels, after US equities tumbled on weak earnings from bellwethers IBM (IBM) and United Technologies (UTX), while Apple Inc (AAPL.O) slumped in late trading after posting its results. The Shanghai Composite Index in mainland China rose 0.6 percent to 4,017.67, though in a sign of continuing volatility it weaved in and out of positive territory.
“Since the market had been rising, such bad news can take a toll”, Daiwa Securities senior technical analyst Hikaru Sato said.
Investors were also keeping an eye on Greece where the government raised taxes and paid billions of euros to its creditors on Monday, as banks reopened just days after the debt-laden country reached a bailout deal with its creditors.
The dollar slipped on profit-taking after a recent rally, although the weakness is not expected to last as the Federal Reserve holds its next policy meeting on July 29, with traders looking for clues about its timetable for lifting interest rates.
The dollar was at 123.64 yen in Tokyo Wednesday, slightly up from 123.86 yen in New York, but lower than 124.35 yen in Tokyo earlier Tuesday.
The euro fetched $1.0825 and 134.65 yen, against $1.0824 and 134.55 yen in USA trade.
And on oil markets USA benchmark West Texas Intermediate for August delivery fell 20 cents to US$49.95 a barrel, while Brent crude for September dropped 14 cents to US$56.51 in afternoon trade. Germany’s DAX slipped 0.1 percent to 11,728.09. New Zealand’s NZX 50 Index climbed 0.2 percent.
Harley-Davidson jumped 4 percent after its earnings beat estimates.
The rout caused concern on Wall Street and kept U.S. share gains in check, though all three major indexes posted modest rises and the Nasdaq Composite still managed to mark its third straight record close.
Taiwan Semiconductor Manufacturing Co. closed 1.07 percent lower at Tw$139.0 while Fubon Financial Holding was off 0.98 percent at Tw$60.5.
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Universal Robina rose 0.27 percent to 183 pesos and GT Capital gained 2.46 percent to 1,414 pesos but Semirara Mining and Power plunged 9.31 percent to 111.10 pesos after its mine was shut down by an accident that killed nine people last week.
