Asia's major markets tumbled in early trading today after shares on Wall Street fell sharply for a third straight session amid speculation a US interest rate cut was unlikely.
Tokyo's Nikkei 225 index lost 1.51 per cent to 17,780 points, while Hong Kong's Hang Seng Index was down 1.36 per cent to 20,495.
Asian shares often track Wall Street because the United States is one of the biggest markets for the region's exporters.
US markets fell sharply as investors' hopes for an interest rate cut later this year began to fade. The cut began to look unlikely because of rising bond yields that many believe will make the Federal Reserve less interested in reducing short-term interest rates.
Another factor weighing down US markets was mixed retail sales results for May. Sales figures improved compared to the prior month, but investors were worried rising gas prices could hurt consumer spending.
The Dow fell 198.94, or 1.48 per cent, to 13,266.73, bringing its three-day loss to about 410 points. All 30 stocks in the blue chip average declined yesterday.