Asian markets sink into the red on Wednesday; STI down 1.5%

ASIAN markets stumbled on Wednesday, as key indices across the region tracked overnight retreats in the US from the Dow and S&P 500.

In Japan, the Nikkei 225 Index fell 0.96 per cent or 276.26 points to end at 28,366.95, while the benchmark Kospi in South Korea ended 0.6 per cent or 19.87 points lower at 3,285.34. The country on Wednesday reported its highest Covid-19 daily case count in months.

Hong Kong's Hang Seng Index similarly extended its losses into a seventh day; sliding 0.4 per cent or 112.24 points to 27,960.62. ( see Amendment note)

On the local bourse, the benchmark Straits Times Index (STI) declined 1.54 per cent or 48.99 points to end at 3,141.60.

IG Market Strategist Yeap Jun Rong said: "Sentiments largely mirrored the weak performance in US markets overnight, where a lower-than-expected print in the US non-manufacturing PMI weighed on cyclical and reopening sectors."

"This comes along with several risks which include ongoing Covid-19 resurgences and cyber security clampdown by Chinese authorities, which weighed on tech firms in the region," he added.

The majority of the STI constituents ended lower on Wednesday, with blue chip counters Keppel Corporation, Singapore Airlines (SIA), OCBC and DBS leading the losses.

Keppel fell 2.77 per cent or S$0.15 to end at S$5.27, while SIA slid 2.7 per cent or S$0.14 to close at S$5.04.

OCBC and DBS ended 2.54 per cent and 2.53 per cent lower at S$11.89 and S$30.09 respectively.

Meanwhile, Jardine Matheson Holdings emerged as top advancer; rising 1.94 per cent to US$64.76.

Yangzijiang Shipbuilding (YZJ) and Dairy Farm were the remaining two counters that made gains. YZJ inched up 0.7 per cent to close at S$1.44, while Dairy Farm ended 0.24 per cent higher at US$4.23.

On the broader market, decliners outnumbered advancers 304 to 208, with 1.5 billion securities worth S$1.41 billion changing hands.

Amendment note: An earlier version of the article indicated the wrong close for the Hang Seng Index. The article has been amended to reflect this change.