Investing.com - Asian markets slipped in morning trade on Wednesday after U.S. equities closed lower overnight on disappointing corporate results.
The Dow Jones Industrial Average fell by 125.98 points to close at 25,191.43 while the S&P 500 closed 0.6% lower to 2,740.69. The Nasdaq Composite slipped 0.4% to close at 7,437.54.
The losses came as Caterpillar (NYSE:CAT) dropped as much as 10% after reporting disappointing earnings results. Higher steel prices and tariffs resulted in increased material costs for the company, according to a statement.
Energy producers also slumped more than 1% as oil prices remained at a five-week low.
“This week’s earnings announcements are the bulk of them, so it will be crucial to see what happens, especially to industrials to see whether there’s been any sort of disruption of their business due to the trade disputes,” said John Vail, chief global strategist at Nikko Asset Management.
In Asia, Japan’s Nikkei 225 fell 0.2% by 9:52 AM ET (01:52 GMT). The Flash Markit/Nikkei Japan Manufacturing Purchasing Managers' Index (PMI) rose to a seasonally adjusted 53.1 in October from a final 52.5 in September, official data showed.
Shares of Subaru Corp (T:7270) plunged as much as 6% earlier in the day after the automaker cut its operating income outlook.
South Korea’s KOSPI slipped 0.3%. Index heavyweights Samsung (KS:005930) shares slipped by 1.2% while SK Hynix Inc (KS:000660) fell by 2.9%.
China’s Shanghai Composite and the Shenzhen Component both declined 0.5%, while Hong Kong’s Hang Seng Index inched up 0.1%.
Down under, Australia’s ASX 200 traded 0.3% lower.
In other news, U.S. President Donald Trump said he is “very unhappy with the Fed” for endangering the U.S. economy by raising rates.
President Donald Trump directly accused Federal Reserve Chairman Jerome Powell of endangering the U.S. economy by raising interest rates.
"I'm just saying this: I'm very unhappy with the Fed because Obama had zero interest rates," Trump told the Wall Street Journal in an interview on Tuesday. "Every time we do something great, he raises the interest rates."
The Fed hiked interest rates three times this year after data showed U.S. economy was healthier than expected. Markets widely expected the central bank to raise rates again before year-end.