Equity sell off hits Asia

A risk-off tone dominated market sentiment overnight, sending commodities and share prices lower, while boosting safe havens including the yen.

Despite being a quiet day on the data calendar, there was plenty of action in markets over the last 24 hours. Asia took cues from moves on Wall Street, which closed deep in the red on Monday.

Federal Open Market Committee (FOMC) Vice Chair and NY Fed President William Dudley indicating on Monday that he is in favour of a hike before year end, the same view San Francisco Fed President John Williams gave yesterday.

Chicago President Charles Evans continued to dissent from his colleagues though, highlighting the risks in moving too early.

Japan's benchmark Nikkei 225 index slumped 2.64% to 17,179.76 points within the first hour of trade, while Tokyo's broader Topix gauge plummeted 2.86% to 1,397.58 points.

Hong Kong's benchmark Hang Seng index crashed 3.0% to 20,551.26 points at the opening bell, and mainland China's benchmark Shanghai Composite fell 1.65% to 3,050.15 points at the same time.

Korea's benchmark Kospi index slipped 0.22% to 1,942.85 points this morning in Seoul.

The benchmark Australian S&P/ASX 200 plunged 2.67% to 4,977.10 points in Sydney, with almost the entire board trading in red, led by oil stocks.

New Zealand's benchmark S&P/NZX 50 index fell 1.06% to 5,638.61 points this afternoon in Wellington.