Asian stocks followed Wall Street lows on Thursday as it is expected that US leaders will agree on a new economic stimulus ahead of the November 3 presidential election.
The benchmark declined in Shanghai, Tokyo and Hong Kong. Sydney Advanced.
In Seoul, the company managing the boy band BTS launched the market amid criticism by Chinese internet users after the group leader thanked Korean war veterans for their sacrifices. Big Hit Entertainment Ltd.’s share price more than doubled from mid-morning. But Seoul’s Kospi fell 1% to 2,346.45.
Treasury Secretary Steven Menuchin said Wall Street’s benchmark S&P 500 index closed down 0.7% on Wednesday, adding that he and congressman were “very different” on new aid to the struggling US economy. Consumer expenditures, the main US economic engine, weakened after the first additional unemployment benefits expired.
“Menuchin added another nail to the coffin on pre-election excitement,” IG’s Jingyi Pan said in a report.
The Shanghai Composite Index fell 0.1% to 3,337.51 and the Nikkei 225 in Tokyo fell 0.5% to 23,517.63. Hang Seng in Hong Kong fell 1.2% to 24,370.76.
The S & P-ASX 200 in Sydney rose 0.8% to 6,230.10. New Zealand, Singapore and Jakarta also retreated.
Thailand’s benchmark fell by 1% as the government declared a “critical state of emergency”, followed by thousands of protesters demanding democratic change, the third major gathering by activists.
The Thai police on Thursday morning dispersed a group of pro-democracy protesters who camped outside the Prime Minister’s office overnight to demand his resignation. Police said they arrested 20 people.
According to Pelosi’s aide Drew Hammill, the Speaker of the House of Representatives, Mnuchin and Nancy Pelosi, spoke on the phone on Wednesday but made no compromise. Mnuchin said it would be difficult to complete an agreement before next month’s presidential election.
On Wall Street, consumer spending, banks and companies relying on technology and communications stocks suffer the brunt of the sale.
The S&P 500 fell to 3,488.67. The Dow Jones Industrial Average lost 0.6% to close at 28,514. The Nasdaq Composite closed down 0.8% at 11,768.73.
Investors are reeling amid optimism about a potential coronavirus vaccine that helped propel an earlier market rally, and the lack of US economic activity.
Major US companies have started recording quarterly earnings this week.
Bank of America sank 5.3% after analysts’ forecasts fell short. Wells Fargo dropped 6% after Wells Street was lower than Wall Street.
The Federal Reserve has indicated that it will keep interest rates at almost zero for some time to support the economy, even if inflation reaches its target level.
Among energy markets, benchmark US crude on the New York Mercantile Exchange rose 7 cents to $ 41.11 a barrel. Brent crude, which is used to price international oils, added 6 cents to $ 43.38 a barrel in London.
The dollar rose to 105.26 yen from Wednesday’s 105.15 yen. The euro was down from $ 1.1753 to $ 1.1750