Except for Shanghai, regional bourses all opened in the red, dragged down by the overnight tumble on Wall Street, where the Dow Jones Industrial Average (DJIA) fell 1.96% and the broader S&P 500 Index by 2.21%. Yesterday, the DJIA shed 15.72 points or 0.17% and the S&P 500 eased 3.98 points or 0.4% at the opening.
The markets remained in negative territory throughout the day, which also had a spillover effect on European bourses which stayed in negative zone most of the day.
The latest batch of economic data showed that the euro zone economy — comprising 16 countries using the euro — fell 0.1% on-quarter in the three months to June.
The zone's gross domestic product (GDP) shrank 2.5% in January to March. Second-quarter GDP was 4.7% lower than a year earlier, after a 4.9% fall in the first quarter, according to Reuters.
In Asia, Hong Kong's Hang Seng Index fell 1.76% to 19,522, Japan's Nikkei 225 dropped 2.37% to 10,280.46; Singapore's Straits Times Index lost 1.02% to 2,569.93 while the Jakarta Composite Index declined 1.76% to 2,285.93. However, the Shanghai Composite Index rose 1.16% to 2,714.97.
On Bursa Malaysia Securities, the 30-stock FBM KLCI eased 0.28% or 3.27 points to 1,168.01. Turnover was thin with only 519 million shares valued at RM904 million. Declining stocks beat advancers 423 to 181.
Crude palm oil (CPO) futures for September delivery fell by RM80 to RM2,315 per tonne while the most traded CPO contract for November declined RM50 to RM2,253 per tonne.
Among the major decliners were Genting Bhd, Parkson Holdings Bhd, Kuala Lumpur Kepong Bhd, Malaysian Airline System Bhd, Sime Darby Bhd and Axiata Group Bhd.
Genting fell 19 sen to RM6.45, Parkson nine sen to RM5.11 KL Kepong eight sen to RM13.12, MAS seven sen to RM3, Sime six sen to RM8.20 and Axiata four sen to RM3.09.
OSK Investment Research head Chris Eng said the market was in range-bound while the FBM KLCI was "helped by the more positive Shanghai board".
He said there were no clear-cut sectoral winners or losers in the market. "The market remains to see lacklustre trading and profit-taking activities."
Eng said OSK Research's support level for the FBM KLCI was 1,150 and resistance level at 1,180.
Meanwhile, InsiderAsia cautioned that global equities could be in for more volatility in the days ahead. Investors are growing worried that valuations have been stretched too far, having chased share prices sharply higher over the past few months, it said.
"There may also be a psychological element involved given that the month of September is traditionally a difficult month for equities," it added.
InsiderAsia said although global economic growth would strengthen in the third quarter, some were worried the recovery might not be sustainable going into the last quarter as the impact from inventory rebuilding and government stimulus plans faded.