Asian stocks weakened on Wednesday following Wall Street’s steepest drop since the August 5 market selloff, with tech shares mirroring losses in the U.S. 

Japan’s Nikkei 225 fell by up to 3.87% to 37,188.08, while the broader Topix index declined over 3.21% to 2,645.41. South Korea’s KOSPI index also dropped 2.56% to 2,596.41.

U.S. stocks tumbled on Tuesday at the start of a historically challenging month for markets, ahead of data that could influence the Federal Reserve’s rate-cutting plans. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average saw their largest single-day percentage drops since early August. Nine out of the 11 S&P 500 sectors fell, led by technology, energy, communication services, and materials.

Investor sentiment deteriorated after the Institute for Supply Management reported on Tuesday that U.S. manufacturing remained weak, despite a slight improvement in August from an eight-month low in July.

Oil prices remained near multi-month lows amid signs of a resolution to the dispute that has halted Libyan crude production and exports. Brent crude futures were last down 0.05% at $73.71 a barrel, while U.S. crude futures slipped 0.13% to $70.25 per barrel, following their lowest levels since December in the previous session. – Agencies