Asian shares fell marginally on Tuesday, with the expected Wall Street slump that would come with badly needed aid to the Washington economy ahead of the US presidential election.
The market’s focus on US aid has been amidst global uncertainty about the continuing economic damage from the coronavirus epidemic, which has slowed growth with social far-reaching restrictions, unemployment, crisis-ridden trade, as well as tourism and trade closures.
Japan’s benchmark Nikkei 225 dipped 0.3% to 23,600.98 in morning trading. South Korea’s Kospi slipped 0.2% to 2,341.35 points. Australia’s S&P / ASX 200 fell nearly 0.3% to 6,212.80. Hong Kong’s Hang Seng closed down 0.1% at 24,533.47 points, while Shanghai Composite slipped 0.3% to close at 3,303.67.
Stephen Inns, chief global market expert at Axi, said, “As expected before the election, the balloon defaults and the stock struggles to float on its own during the earnings season, with times of exhaustion and Overcome due to exhaustion. ” .
“And while there is no shortage in overseeing markets uncertainly, investors continue to behave cautiously ahead of the last presidential debate.”
Market players are looking for additional data on China’s recovery, as it may necessarily accelerate growth in the rest of Asia. Recent data from Japan shows that exports to China are slowly recovering.
On Wall Street, the S&P 500 dropped 1.6%, its worst day in more than three weeks. Wall Street is hopeful that lawmakers will agree on new stimulus measures for the economy, but have reduced the odds before the November 3 election.
The S&P 500 fell 56.89 points to close at 3,426.92. The Dow Jones Industrial Average of Big Blue Chips fell 410.89 points, or 1.4%, to 28,195.42. The Nasdaq Composite extended the rhythm of its defeat to fifth day, losing 192.67 points, or 1.7%, to 11,478.88.
The shares of the small company also fell. Russell 2000 gave 20.18 points or 1.2%, at 1,613.63. The index has gained 7% this month, surpassing the 1.9% gain for the broader S&P 500.
Stocks are mostly pushing more this month after suddenly withdrawing some of their big gains in September. The benchmark S&P 500 has gained in each of the last three weeks. Nevertheless, trade is often choppy from one day to another, reflecting uncertainty at times of greater stimulus for the economy.
Investors were also eager for another busy week of corporate earnings reports. Across the S&P 500, analysts expect to report another drop in companies’ profits.
In energy trade, US benchmark crude fell 26 cents to $ 40.57 a barrel. The international standard Brent crude dropped 29 cents to $ 42.33 a barrel.
The US dollar climbed from 105.46 yen to 105.58 Japanese yen late on Monday. Euro $ 1.1767, up slightly from $ 1.1708.