In Asian Equity Markets the Nikkei 225 fell 1.4 percent in Tokyo, with the banking and non-ferrous metals sectors among the worst-performing sectors. The broader Topix was down 1.29 percent as 32 of its 33 sub-indexes traded lower. The Kospi slid 1.58 percent, as heavyweights like Samsung Electronics and Posco sank 1.56 percent and 2.72 percent, respectively. Greater China markets were also fell. Hong Kong’s Hang Seng Index dropped 1.07 percent and, on the mainland, the Shanghai composite lost 1.35 percent. Over in Sydney, however, stocks registered more measured declines. The S&P/ASX 200 edged down by 0.45 percent.

In Currency Markets the euro was trading near multi-month lows against major rivals on Wednesday as Italy’s political crisis deepened, raising the likelihood of an early election that some market players fear could lead to a eurosceptic government in Rome. Sources close to some of Italy’s main parties said there was now a chance that President Sergio Mattarella could dissolve parliament in the coming days and send Italians back to the polls as early as July 29. The euro, which slipped to a 10-month low of $1.1510, on Tuesday, and last stood at $1.1542, little moved in Asian trade. It has fallen 4.5 percent so far this month.

In Commodities Markets oil prices were mixed in early Asian trade on Wednesday, with worries that Saudi Arabia and Russia will pump more crude weighing on the market. Saudi Arabia and Russia have discussed raising OPEC and non-OPEC oil production by 1 million barrels per day (bpd) to counter potential supply shortfalls from Venezuela and Iran. Brent crude was down 1 cent at $75.38 a barrel, after settling up 9 cents on Tuesday. U.S. West Texas Intermediate crude was up 13 cents, or 0.2 percent, at $66.86 a barrel, having earlier settled down $1.15. The Organization of the Petroleum Exporting Countries is due to meet in Vienna on June 22.

In US Equity Markets the S&P 500 and the Dow fell more than 1 percent on Tuesday as political turmoil in Italy sparked concerns about the stability of the euro zone. The S&P 500 lost 1.13 percent, to 2,690.45 and the Nasdaq Composite fell 0.49 percent, to 7,397.54. Shares of large U.S. banks were also pressured by downbeat guidance from JPMorgan Chase & Co and Morgan Stanley. JPMorgan’s corporate and investment bank chief said his bank’s second-quarter markets revenue would be flat compared with a year earlier. JPMorgan Chase shares fell 4.5 percent while Morgan Stanley shares ddecline 6.0 percent. Morgan Stanley had the biggest percentage decline among S&P 500 stocks.

In Bond Markets U.S. benchmark 10-year Treasury yields posted their largest one-day decline on Tuesday since Britain voted to exit the European Union nearly two years ago, as a political crisis in Italy, the third-largest euro zone economy, fueled a flight to safe-haven assets. U.S. two-year yields, which move inversely to prices, also showed steep declines, with their largest one-day fall in more than nine years. Both the U.S. two-year and 10-year yields dropped to seven-week lows and slid for four straight sessions. U.S. 30-year bond yields, on the other hand, sank to a nearly four-month low. U.S. 10-year yields fell to seven-week lows of 2.759 percent and were last at 2.788 percent. Yields fell 14.6 basis points.