CANBERA (dpa-AFX) - Asian stock markets are lower on Tuesday as weak earnings guidance from heavy equipment maker Caterpillar and chipmaker Nvidia stoked fears of a slowing Chinese economy.
Worries about renewed U.S.-China tensions also weighed on the markets after the U.S. Department of Justice unsealed sweeping criminal charges against Chinese tech giant Huawei and its chief financial officer Meng Wanzhou.
The Australian market, which resumed trading on Tuesday after a holiday in the previous session, is declining. Gains by mining stocks were more than offset by weakness in banks and oil stocks.
The benchmark S&P/ASX 200 Index is losing 41.30 points or 0.70 percent to 5,864.30, off a low of 5,861.60 earlier. The broader All Ordinaries Index is down 39.70 points or 0.66 percent to 5,931.40. Australian stocks closed notably higher on Friday.
The big four banks are notably lower. ANZ Banking, National Australia Bank, Westpac and Commonwealth Bank are lower in a range of 1.4 percent to 2.2 percent.
Oil stocks are also weak after crude oil prices fell more than 3 percent overnight. Oil Search is declining more than 1 percent, while Santos and Woodside Petroleum are down almost 1 percent each.
Meanwhile, the major miners are higher after iron ore prices gained following the deadly Minas Gerais mining disaster in Brazil. BHP Group is advancing 2 percent, Rio Tinto is rising more than 3 percent and Fortescue Metals is gaining more than 5 percent.
BHP Group said that no agreement has been reached over the financial obligations of its Samarco joint venture following the deadly 2015 mine disaster and that Samarco's operations will restart only if it is safe.
Gold miners are also rising after gold prices rose to a seven-month high. Evolution Mining is higher by more than 6 percent and Newcrest Mining is advancing almost 2 percent.
Incitec Pivot said that unplanned outages at two of its plants are expected to impact its fiscal 2019 earnings before interest and tax by A$45 million. Shares of the industrial explosives maker are losing more than 8 percent.
Shares of TPG Telecom are adding 0.4 percent even as the company said it has stopped work on the construction of Australia's newest mobile network rollout due to a government ban on using Huawei equipment in 5G.
On the economic front, Australia will see December results for the indexes for business confidence and conditions from National Australia Bank today.
In the currency market, the Australian dollar is lower against the U.S. dollar on Tuesday. The local currency was quoted at $0.7163, down from a high of $0.7203 on Monday.
The Japanese market is notably lower, extending losses from the previous session following the negative cues overnight from Wall Street and on a stronger yen.
The benchmark Nikkei 225 Index is losing 208.78 points or 1.01 percent to 20,440.22, after touching a low of 20,406.22 earlier. Japanese shares closed lower on Monday.
The major exporters are lower on a stronger yen. Mitsubishi Electric is losing more than 2 percent and Panasonic is declining almost 2 percent. Sony and Canon are lower by more than 1 percent each.
In the tech sector, Advantest is losing almost 7 percent and Tokyo Electron is down more than 3 percent. Among the major automakers, Toyota and Honda are declining 1 percent each.
Banks are mixed. Mitsubishi UFJ Financial is losing 0.5 percent, while Sumitomo Mitsui Financial is higher by 0.3 percent. In the oil space, Japan Petroleum is down more than 1 percent and Inpex is losing almost 2 percent after crude oil prices fell overnight.
Asahi Group Holdings' shares are rising more than 2 percent after falling on Monday on news that the company has agreed to acquire UK-based Fuller, Smith & Turner's brewing business for $330 million.
Among the worst performers, Trend Micro is losing more than 9 percent and Screen Holdings is lower by almost 7 percent.
In the currency market, the U.S. dollar is trading in the lower 109 yen-range on Tuesday.
Elsewhere in Asia, Shanghai is losing more than 1 percent and Taiwan is declining almost 1 percent. South Korea, Singapore, New Zealand, Hong Kong and Malaysia are also lower, while Indonesia is modestly higher.
On Wall Street, stocks closed significantly lower on Monday in a negative reaction to earnings news from heavy equipment maker Caterpillar. Graphics chip maker Nvidia also saw substantial weakness after lowering its fiscal fourth quarter revenue guidance due to deteriorating macroeconomic conditions, particularly in China.
The Dow tumbled 208.98 points or 0.8 percent to 24,528.22, the Nasdaq plunged 79.18 points or 1.1 percent to 7,085.68 and the S&P 500 slumped 20.91 points or 0.8 percent to 2,643.85.
The major European markets also moved to the downside on Monday. While the German DAX Index dropped by 0.6 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index fell by 0.8 percent and 0.9 percent, respectively.
Crude oil prices fell sharply on Monday, with rising U.S. rig count and weak China data weighing on markets. WTI crude for March delivery tumbled $1.70 or 3.2 percent to $51.99 a barrel on the New York Mercantile Exchange.
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