Concerns about the health of China's economy kept pressure on Asian markets and commodities Wednesday, a day after stocks in Shanghai tumbled more than 6%.
The Shanghai Composite Index opened 2.7% lower at 3646.80 and the smaller Shenzhen Composite fell 3.1% to 2107.65.
The Nikkei Stock Average was down 0.3% while South Korea's Kospi fell 1.1%. Hong Kong's Hang Seng Index, meanwhile, gained 0.2%.
Investors likely will sit on sidelines "to see whether Shanghai stocks will suffer another decline, said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management.
Japan's latest economic data signals the growing reach of a slowdown in China, which accounts for about a fifth of Japan's exports and imports. On Wednesday, Japan reported a monthly deficit in July of ¥268.1 billion ($ 2.15 billion), the fourth straight month of shortfall, after exports rose 7.6% on year but imports fell 3.2%.
Exports rose as robust shipments to the U.S. offset sluggish exports to China. Imports fell as sliding oil prices reduced the cost of purchasing gas and oil from the Middle East and Southeast Asia.
Weakness in the region extended from Tuesday, when the Shanghai Composite Index tumbled 6.1%, amid fresh anxieties about China's commitment to steadying the stock market.
Despite the latest stock turmoil, the Chinese currency has held relatively steady after the central bank devalued the yuan by nearly 2% last week. On Wednesday, China's central bank set the yuan's trading midpoint nearly flat with the level a day earlier, at 6.3963 per U.S. dollar. The currency can trade within a 2% band above or below that. The onshore yuan is currently 6.3965 against the U.S. dollar.
Still, the prospect of slackening demand from China, one of the world's largest consumers of oil, metals and food, and concerns about oversupply have pushed many commodities to multiyear lows, particularly industrial metals. Overnight, copper futures fell below $ 5,000 a metric ton for the first time since the financial crisis.
On Wednesday, Brent crude oil futures were down 0.6% at $ 48.52.
One bright spot was Australia's S&P ASX 200, up 1.5%, with gains in what had been the most-battered sectors: banks and energy stocks.
Woodside Petroleum Ltd. reported first-half net profit in line with expectations, of $ 679 million and held its full-year production target. Shares currently are up 2.1%.
Still, challenges remain on the horizon. IG Market strategist Evan Lucas said the macroeconomic backdrop and state of commodities markets makes it hard for investors to be positive.
"The ASX is well and truly caught up in macro-fear currently," Evans says, noting the index is down 11.6% from an April high of 5999.
—Hiroyuki Kachi and Robb M. Stewart contributed to this article.
Write to Chao Deng at Chao.Deng@wsj.com
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