Many Asian markets yesterday took the lead from a weak Wall Street on Tuesday and ended the day in the red, while the pound rallied on the back of the British election announcement.

Markets were also on edge amid news of increasing tensions in the Korean peninsula and awaiting the outcome of an unpredictable French election.

Hong Kong fell 0.4 per cent, Sydney dropped 0.6 per cent, Seoul slipped 0.5 per cent and Singapore's Straits Times Index lost 0.4 per cent.

Shanghai tumbled 0.8 per cent, with analysts saying that increased scrutiny by regulators on speculative trading activity has been a further dampener on the market.

Border & Cie Singapore chief investment officer Bryan Goh told The Straits Times that investors, especially those in Asia, should not worry too much about the British election.