Asian stock markets are trading lower on Wednesday with investors indulging in some heavy selling across the board due to the political uncertainty in Greece.
Greece is heading for a fresh general election after the second round of talks between political parties to form a coalition government failed to reach agreement on Tuesday. Investors fear the fall out from a potential Greek exit from the euro zone monetary union.
The Australian market is trading lower on Wednesday with investors indulging in some heavy selling across the board following a weak lead from the U.S. and European markets.
Mining and energy stocks are down sharply, and mirroring their decline, the Metals & Mining index and the Energy index are down more than 3 percent and 2 percent, respectively. Consumer discretionary, financial, industrial and property trusts stocks are also mostly trading notably lower.
The benchmark S&P/ASX 200 index is down 67.5 points or 1.6 percent at 4,198.8. The broader All Ordinaries index is trading at 4,245, down 70.5 points or 1.6 percent from its previous close.
Among top miners, BHP Billiton is down 2.8 percent, Rio Tinto is losing about 3.5 percent, Fortescue Metals is down with a loss of over 4 percent and Newcrest Mining is trading lower by around 3 percent.
In the energy sector, Woodside Petroleum is down 2.3 percent, Santos is down with a loss of 2 percent, Oil Search is trading lower by 1.8 percent and Caltex Australia is trading 2.7 percent down.
Among bank stocks, ANZ Bank, Commonwealth Bank of Australia, National Australia Bank and Westpac are down 0.6 to 1.4 percent. Bendigo & Adelaide Bank and Bank of Queensland are trading lower by 1.5 percent and 1.8 percent, respectively.
Toll Holdings shares are down more than 12 percent following and announcement from the company that earnings in 2012 will be sharply lower due to weakness in the retail sector.
Toll Holdings said it expects underlying earnings before interest and tax to fall to about A$400-A$420 million, excluding one-off items but including associate earnings. The company reported EBIT of A$436 million for the 2011 financial year.
Aquarius Platinum is down 9.5 percent and Paladin Energy is trading lower by 9.3 percent. Whitehaven Coal, Atlas Iron, Boart Longyear, Panaust, Regis Resources and David Jones are down 3.5 to 6.5 percent.
Perseus Mining, Onesteel, Incitec Pivot, Bluescope Steel, Asciano and Downer EDI are trading lower by 2.5 to 3.3 percent.
The Japanese market is trading lower with weak machinery data and concerns about the political and economic situation in Greece weighing on sentiment to a notable extent. The yen's surge against the euro - it rose to the lower-102 level - also contributed to the weak start for stocks.
Automobile and bank stocks are mostly trading weak. Retail, shipbuilding and paper stocks are also drifting lower, while marine transport, steel, food and chemicals stocks are trading mixed.
The benchmark Nikkei 225 index, which declined to 8,825, is currently trading at 8,844, down 56.7 points or 0.6 percent from its previous close.
Nippon Suisan Kaisha, Chubu Electric Power, Yokogawa Electric Corp, Terumo Corp, Nikan Corp, Nippon Sheet Glass, Tokyo Gas, Fujitsu and Pacific Metals are trading lower by 2 to 5 percent.
Nomura Holdings, Nissan Chemical Industries, Kansai Electric Power, Bridgestone, Nissan Chemical Industries, Mitsubishi Materials, Sharp Corp, Resona Holdings and Showa Shell KK are also trading notably lower.
Among bank stocks, Shizuoka Bank, Bank of Yokohama and Chiba Bank are down 2 to 4 percent. Mizuho Financial is trading 1.8 percent up.
In the automobile space, Toyota Motor, Isuzu Motors and Honda Motor are down 1 to 2 percent. Mitsubishi Motor is trading modestly lower and Nissan Motor is trading flat. Mazda Motor is trading in positive territory, gaining nearly 2 percent.
Taiheiyo Cement shares are up 6 percent. Taiyo Yuden is gaining nearly 5 percent. Nippon Yusen KK, Nisshin Steel, Mitsui & Co, Kawasaki Kisen Kaisha, Mitsui Mining, Konami Corp, Fuji Electric and JFE Holdings are also trading notably higher.
According to data released by the Cabinet Office, core machine orders in Japan were down a seasonally adjusted 2.8 percent on month in March, beating forecasts for a contraction of 3.5 percent following the downwardly revised 2.8 percent increase in February.
On a yearly basis, core machine orders fell 1.1 percent - well shy of expectations for a gain of 4.4 percent after climbing 8.9 percent in the previous month. For the second quarter of 2012, core machine orders are expected to add 2.5 percent compared to the previous three months.
Meanwhile, an index measuring tertiary industry activity was down a seasonally adjusted 0.6 percent on month at 98.6 in March, the Ministry of Economy, Trade and Industry said. That missed forecasts for a contraction of 0.4 percent following the flat reading in February.
In the currency market, the U.S. dollar traded in the lower 80 yen range in early deals in Tokyo. The yen is currently trading at 80.35 to the dollar.
Among other markets in the Asia-Pacific region, Australia, South Korea, Hong Kong and Indonesia are trading sharply lower with their benchmark indices losing more than 2 percent each.
Malaysia, India, Singapore and Taiwan are also down with notable losses, while Shanghai and New Zealand are trading modestly lower. Markets across the region ended mixed on Tuesday.
On Wall Street, stocks ended weak on Tuesday after showing a lack of direction for much of the session, with worries about Greece weighing on the markets once again, overshadowing a batch of largely upbeat U.S. economic data.
The major averages moved roughly sideways going into the close and ended firmly in negative territory. The Dow drifted down 63.3 points or 0.5 percent to 12,632, the Nasdaq ended down 8.8 points or 0.3 percent at 2,893.8 and the S&P 500 dropped 7.7 points or 0.6 percent to 1,330.7.
Major European markets too ended lower on Tuesday. The German DAX index lost 0.8 percent, while the French CAC 40 index and the U.K.'s FTSE 100 index declined by 0.6 percent and 0.5 percent, respectively.
U.S. crude oil futures ended at a five-month low on Tuesday, amid demand growth concerns due to eurozone worries. The dollar's surge against other major currencies too contributed to oil's weak close. Crude for June delivery dropped $0.80 or 0.8 percent to close at $93.98 a barrel on the New York Mercantile Exchange.
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