Stock market today: Asian shares are mixed after Wall Street drifts ahead of US Election Day
Asian shares were mixed on Tuesday, with markets in Tokyo and Seoul leading the gains as investors awaited the outcome of the US midterm elections. The MSCI Asia ex-Japan index was down 0.3% by midday, while the Nikkei 225 rose 0.7% and the Kospi gained 0.6%.
Wall Street closed mostly lower on Monday, with the Dow Jones Industrial Average dropping 0.2%, the S&P 500 falling 0.4% and the Nasdaq Composite slipping 0.5%. The tech-heavy Nasdaq had been the best performer in recent sessions, benefiting from a fall in US Treasury yields, but Monday’s decline suggested that some investors may be locking in gains before the election.
The US election is widely seen as a potential turning point for the stock market, with a Democratic sweep of Congress seen as increasing the chances of a more aggressive approach to spending on infrastructure and other priorities. This could be positive for stocks, particularly those in cyclical sectors such as industrials and energy.
However, a Republican takeover of either the House or Senate would likely lead to more gridlock in Washington, making it more difficult to pass significant legislation. This could be a negative for stocks, as it would suggest that policy uncertainty and volatility are likely to persist.
In addition to the US election, investors are also watching for signs of slowing economic growth in China and the impact of rising inflation on consumer spending around the world.
In China, the Shanghai Composite Index was down 0.4%, while the Shenzhen Component Index fell 0.5%. The People’s Bank of China set the yuan’s midpoint weaker at 7.0706 against the US dollar, extending the currency’s depreciation trend in the face of China’s sluggish economic growth.
In Europe, the FTSE 100 was up 0.1% in early trading, while the DAX was down 0.2%. Investors in Europe were awaiting the latest reading on German inflation, due to be released later in the morning.
Oil prices were mixed, with Brent crude down 0.3% to $96.95 a barrel and West Texas Intermediate down 0.1% to $89.38 a barrel.
The US dollar index, which measures the greenback’s strength against a basket of major currencies, was up 0.1% at 105.14. Gold prices were also down, falling 0.2% to $1,638 an ounce.
Overall, Asian shares are showing a mixed performance on Tuesday, with investors awaiting the outcome of the US midterm elections and other key economic and geopolitical developments.
