Asian Shares Slide On Recession Worries

(RTTNews) - Asian stocks hit a two-year low on Wednesday and the yen continued to decline, as solid U.S. services data released overnight reinforced investor expectations for a more aggressive pace of FOMC rate hikes.

Chinese trade data missed expectations, adding to headwinds for the world's second-largest economy.

China's Shanghai Composite index fluctuated before ending marginally higher for the day as official data showed exports growth slowed sharply in August amid softening global demand.

Overseas shipments rose an annual 7.1 percent, compared to 18 percent growth in July, China's General Administration of Customs said. Imports growth slowed to 0.3 percent from 2.3 percent in July. Hong Kong's Hang Seng index fell 0.83 percent to 19,044.30.

Overnight, the U.S. Securities and Exchange Commission (SEC) warned that U.S. accounting firms risked breaching U.S. rules if they agreed to lead audits of New York-listed Chinese and Hong Kong companies looking to avoid potential trading bans.

Japanese shares fell notably as the yen's plunge worsened despite strongest government warnings yet.

The yen fell over 1 percent to ¥144.38 per dollar in a third day of declines, prompting a shift in language by senior government officials. Finance Minister Shunichi Suzuki noted that the recent moves were very sudden, and the government will act, if needed.

The Nikkei average dropped 0.71 percent to 27,430.30 while the broader Topix index closed 0.57 percent lower at 1,915.65.

Seoul stocks tumbled amid foreign and institutional selling. The Kospi average fell 1.39 percent to 2,376.46 amid declines across the board. SK Hynix, Samsung Electronics and POSCO Holdings lost 2-3 percent. The Korean won slid to the lowest point in more than 13 years.

Australian markets fell sharply to end at a near seven-week low, even as data showed the economy grew strongly in the three months to June.

The benchmark S&P/ASX 200 slumped 1.42 percent to 6,729.30 while the broader All Ordinaries index closed 1.37 percent lower at 6,959.30. Miners, tech and energy stocks paced the declines.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index slipped 0.44 percent to 11,548.30.

U.S. stocks fell overnight as trading resumed after Monday's Labour Day recess.

The Dow dipped 0.6 percent, the tech-heavy Nasdaq Composite shed 0.7 percent and the S&P 500 gave up 0.4 percent as benchmark U.S. Treasury yields jumped to their highest levels since June on the back of strong services activity data.