Asian stock markets lost their grip on earlier gains as the yen strengthened on growing expectations that the Federal Reserve will maintain its stimulus programme until at least next year.
Also weighing on sentiment was the Peoples Bank of China (PBoC) decision on Wednesday to refrain from adding liquidity to the market. That led to a sharp increase in the country's benchmark money market rate.
The PBOC opted not to carry out new reverse repurchase operations. The seven day repurchase rate gained 47 basis points overnight, the largest increase since the middle of the year.
The dollar weakened against the yen after delayed data out on Tuesday showed September non-farm payrolls increased by just 148,000 in September, lower than an anticipated increase of 180,000.
The report, which was delayed by two weeks because of the government shut-down, reinforced the view that the US Federal Reserve will hold off from tapering its bond-buying programme.
The Japanese unemployment rate declined to 7.2%, the lowest rate since November 2008, from 7.3%.
The benchmark Nikkei 225 index closed down 287 points at 14,426 in Tokyo while the Hang Seng fell 283 points to 23,032.
Focus is also expected to turn to preliminary Chinese manufacturing data for October, due out on Thursday.
Source: LiveCharts
Also weighing on sentiment was the Peoples Bank of China (PBoC) decision on Wednesday to refrain from adding liquidity to the market. That led to a sharp increase in the country's benchmark money market rate.
The PBOC opted not to carry out new reverse repurchase operations. The seven day repurchase rate gained 47 basis points overnight, the largest increase since the middle of the year.
The dollar weakened against the yen after delayed data out on Tuesday showed September non-farm payrolls increased by just 148,000 in September, lower than an anticipated increase of 180,000.
The report, which was delayed by two weeks because of the government shut-down, reinforced the view that the US Federal Reserve will hold off from tapering its bond-buying programme.
The Japanese unemployment rate declined to 7.2%, the lowest rate since November 2008, from 7.3%.
The benchmark Nikkei 225 index closed down 287 points at 14,426 in Tokyo while the Hang Seng fell 283 points to 23,032.
Focus is also expected to turn to preliminary Chinese manufacturing data for October, due out on Thursday.
Source: LiveCharts
