Asia-Pacific markets fell Wednesday after ratings agency Fitch cut the U.S. credit rating from AAA to AA+, citing “expected fiscal deterioration over the next three years.”
In Japan, the Nikkei 225 index cratered 768.89 points, or 2.3%, to 32,707.69, dragged by utilities and health technology stocks.
In Hong Kong, the Hang Seng hurtled lower 493.74 points, or 2.5%, to 19,517.38, mainly due to health-care stocks.
Korean stocks fell sharply, snapping a four-day win streak as the country saw its inflation rate for July come in at 2.3% — its lowest level in 25 months.
Australian markets lost ground a day after the Reserve Bank of Australia held its benchmark interest rate to 4.1%.
In other markets
In China, the CSI 300 erased 28.1 points, or 0.7%, to 3,969.90.
In Singapore, the Straits Times Index gave back 48.77 points, or 1.5%, to 3,325.02.
In Korea, the Kospi Index retreated 50.6 points, or 1.9%, to 2,616.47.
In Taiwan, the Taiex index stumbled 319.14 points, or 1.9%, to 16,893.73.
In New Zealand, the NZX 50 lessened 18.37 points, or 0.2%, to 11,962.04.
In Australia, ASX 200 fell 96.11 points, or 1.3%, to 7,354.60.
