Asian Shares Follow Wall Street Lower On Risk Aversion

(RTTNews) - Asian stocks followed Wall Street lower on Wednesday as risk aversion gripped financial markets on the back of rising bond yields and U.S. President Donald Trump's renewed push to acquire Greenland.

Spot gold jumped nearly 2 percent to touch a new record high above $4,800 an ounce in Asian trade after the U.S. dollar suffered its biggest fall in over a month overnight on fears of offshore selling of U.S. assets - the so-called "Sell America" trade.

There were reports that a Danish pension fund plans to sell all its U.S. Treasury bonds by the end of this month.

Oil prices fell more than 1 percent on persistent concerns about global oversupply and receding risks from Kazakh production halt.

China's Shanghai Composite index finished marginally higher at 4,116.94 after a choppy session. Hong Kong's Hang Seng index ended up 0.37 percent at 26,585.06, extending losses for a fifth consecutive session.

Japanese markets ended lower amid worries about the country's bond market after a selloff pushed yields to all-time highs.

Japanese Finance Minister Satsuki Katayama called for market participants to "calm down" and defended the government's fiscal approach in an interview with Bloomberg TV.

The Nikkei average dropped 0.41 percent to 52,774.64, extending losses for a fifth straight session. The broader Topix index settled 0.99 percent lower at 3,589.70, with financials leading losses.

Seoul stocks ignored tariff jitters to hit another record high after data showed South Korean exports rose 14.9 percent year over year in the first 20 days of January, led by a 70 percent jump in semiconductor shipments.

Traders also reacted to a Bloomberg report that said South Korea will delay fulfilling its investment commitment of up to US$20 billion in the U.S. due to currency pressure.

The Kospi average surged 0.49 percent to 4,909.93. Market heavyweight Samsung Electronics rallied 3 percent to a record close.

Likewise, Hyundai Motor soared 14.6 percent to a record on optimism around its humanoid robot push.

Australian markets ended slightly lower to extend losses for a third day and close at a one-week low. The benchmark S&P/ASX 200 dropped 0.37 percent to 8,782.90, with banks declining on prolonged rate worries. The broader All Ordinaries index ended down 0.33 percent at 9,108.60.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index fell 1.15 percent to 13,417.17, marking a third consecutive session of losses.

Overnight, U.S. stocks tumbled as investors weighed inflation risks amid escalating trade uncertainty.

Losses were widespread as President Trump doubled down on his bid take control of Greenland and threatened to impose trade tariffs on several European countries that oppose his plan, claiming the annexation of Greenland is key to national and world security.

The S&P 500 plummeted 2.1 percent, marking its steepest drop for the benchmark index since October. The Dow fell 1.8 percent and the tech-heavy Nasdaq Composite plunged 2.4 percent.