Asia markets poised to fall as bank stocks retreat under pressure on Wall Street

Asia-Pacific markets are set to fall on Wednesday mirroring moves on Wall Street after a decline in U.S. banks.

Shares of JPMorgan Chase and Wells Fargo dropped 2%, and Bank of America dropped 3%. The action came after Fitch warned it may have to downgrade credit rating dozens of banks, including JPMorgan Chase.

Last week, Moody’s lowered its rating on 10 U.S. banks while putting other big institutions on a watchlist for potential downgrades.

In Asia Japan’s Nikkei 225 is set open lower and go below the 32,000 mark for the first time in over a month, with the futures contract in Chicago at 31,920 and its counterpart in Osaka at 31,890 against the index’s last close of 32,238.89.

Futures for Hong Kong’s Hang Seng index stood at 18,360, pointing to a weaker open compared to the HSI’s close of 18,581.11. China will release its house prices for July, something that investors will watch given the country’s recent real estate troubles.

In Australia, futures for the S&P/ASX 200 also point to a lower open, at 7,168 compared to the last close of 7,305.6.

Overnight in the U.S., all three major indexes lost ground, with the S&P 500 falling 1.16% and ending the session below its 50-day moving average. The Nasdaq Composite fell 1.14%, and the Dow Jones Industrial Average slid 1.02% and snapped a three-day positive streak.

— CNBC’s Hakyung Kim and Samantha Subin contributed to this report.