OVERNIGHT

Chinese shares took a hit overnight as falling commodity prices and an announcement that a northern China official made about pending steel plant closures in what would be a consolidation move. Weak copper, nickel and oil prices added to investor concerns.

The Shanghai Composite index at one point was down nearly 3% threatening to end the session down after six straight days of gains. The WSJ reported:

Shares of Chinese steel producers plunged after the official news agency Xinhua reported that the governor of Hebei, a northern Chinese province near Beijing, said the province will aim to close 60% of its steel factories by 2020.

That report sparked selling of steel-related stocks. Shanghai Hualian Mining was down 7.6%, and Shandong Jinling Mining was down 8.5%.

Hong Kong’s Hang Seng Index fell 0.6%, hit by weakness in shares of oil producers.

Elsewhere in the Asia region, stocks were mostly down as investors shied away from risk amid a slump in commodities and oil prices.

Japan’s Nikkei Stock Average lost 1.3% and Korea’s Kospi was down nearly 0.2%. Australia’s S&P/ASX 200 rose about 0.7%.

There are also lingering concerns about upcoming central bank meetings this week, particularly the ECB. Oil prices came under pressure Tuesday in the U.S. as it dropped 3.7% closing at $36.44. There's a conflict between as doubts grow that major producers can actually pull off an output freeze and news that U.S. production is expected to decline next year.

China's February trade performance that came out yesterday has also caused some skittishness among investors after export figures hit six lows. That was far worse than expected.