HONG KONG, Jan 29: Asian stock markets fell across the board today, largely on the back of declines in the US triggered by concerns over a strengthening dollar and falling oil prices.
The Federal Reserve, meanwhile, failed to buoy markets when it repeated its pledge to remain "patient" regarding the United States' first interest rate increase since 2006, signalling a June move remains in play.
Tokyo shares dropped 1.06 percent, or 189.51 points, to close at 17,606.22. Seoul declined 0.54 percent, or 10.56 points, to finish at 1,951.02. Hong Kong lost 1.05 percent and Shanghai fell 1.11 percent in afternoon trading. Sydney bucked the trend, rising 0.30 percent, or 16.72 points, to close at 5,569.50.
Oil prices falling below $45 a barrel -- close to their lowest level in six years -- renewed concern of inflation slowing as well as declining global demand. That has spooked investors who are already nervous about the impact of political uncertainty in Greece on the 19-member euro area.
As a result, all three benchmark US indices fell. The Dow Jones Industrial Average tumbled 1.13 percent, the broad-based S&P 500 slumped 1.35 percent, and the tech-rich Nasdaq Composite Index fell 0.93 percent.
"The risks surrounding international developments... are things like a global economic slowdown or lower inflation as represented by cheaper oil, and geopolitical risks triggered by the fall in oil prices," Mistushige Akino of Ichiyoshi Asset Management Co. told Bloomberg News.
Oil prices were largely flat in Asian trading and any gains were capped amid fresh concern over the growing global supply glut as US crude reserves soared to a record high, analysts said.