TOKYO: Asian stock markets fell in thin trading on Tuesday, extending losses on US and European markets as a stubbornly strong yen dragged Tokyo into the red while falling oil prices deflated energy shares.
With few fresh catalysts to drive deals, investors were eyeing the start of a Group of Seven summit in Japan on Thursday, as US President Barack Obama and other leaders from the club of rich nations meet for annual talks.
Shares of oil-linked firms slumped in early trading after crude dipped for a second day as comments from Iranian officials vowing to keep production up did little to dispel worries about global oversupply.
In early deals, US benchmark West Texas Intermediate for July delivery was down 14 cents at $47.94 a barrel while Brent crude for July slipped 19 cents to $48.16.
By the break in Tokyo, Japanese energy explorer Inpex was more than one percent lower while refiner JX Holdings was down 0.5 percent.
The benchmark Nikkei index fell 0.7 percent as a stubbornly strong yen clouds the outlook for Japanese exporters’ profits.
Hong Kong’s Hang Seng index dropped 0.1 percent, Shanghai was 0.9 percent lower, Seoul fell 0.6 percent, and Sydney edged down 0.2 percent.
Sentiment also took a hit from worries over a possible US interest rate hike by the Federal Reserve as early as next month, analysts said.
