TSE – Asian stocks mixed as markets await US runoff results
Business
Asian stocks were mixed on Wednesday as investors anxiously awaited results of U.S. runoff elections that would determine the legislative balance of power in the world’s largest economy while oil prices rose on news of planned output cuts.
FILE PHOTO: A woman wearing a facial mask, following the coronavirus disease (COVID-19) outbreak, stands in front of an electric board showing Nikkei index outside a brokerage at a business district in Tokyo, Japan, January 4, 2021. REUTERS/Kim Kyung-Hoon
NEW YORK: Asian stocks were mixed on Wednesday as investors anxiously awaited results of U.S. runoff elections that would determine the legislative balance of power in the world’s largest economy while oil prices rose on news of planned output cuts.
Adding to broader uncertainty in markets was the latest twist in a regulatory saga over whether the New York Stock Exchange would delist three Chinese telecom giants on security grounds.
The Shanghai SE Composite Index rose 0.73per cent on Tuesday after the NYSE said it would not delist the companies, however, a person familiar with the matter later said the market operator would restart delisting plans.
In Asia, futures for the S&P 500 fell 0.07per cent, Australian S&P/ASX 200 dipped 0.43per cent and Japan’s Nikkei 225 inched up 0.1per cent.
In the United States, the tense runoff elections in the state of Georgia will decide whether President Elect Joe Biden will have the majority in the Senate he needs to support his agenda or if he will face gridlock in the early stages of his term.
Results are due on Wednesday morning and analysts say Wall Street is likely set for a rally if Republicans win and a dip if Democrats gain control. Exit poll data on Tuesday suggested extremely tight contests.
“A market pullback seems both reasonable and healthy. But stocks won’t plunge to zero because there is a countervailing positive here,” said Phil Orlando, Chief Equity Market Strategist, Federated Hermes of a potential Democratic sweep.
“A Biden honeymoon with Democratic Congress helmed by Nancy Pelosi and Charles Schumer would likely lead to more fiscal stimulus and infrastructure spending. That would serve as a temporary sugar high for stocks in 2021 before the bill comes due in 2022.”
Bucking the trend in Asia, South Korea’s main KOSPI index surpassed 3,000 for the first time, as investors looked towards a broad recovery in exports.
Wall Street trimmed earlier gains on Tuesday as political uncertainty and the discovery of a more contagious variant of the coronavirus in major hubs like New York City tempered bullishness about the vaccine roll out.
The Dow Jones Industrial Average rose 0.55per cent, the S&P 500 gained 0.71per cent and the Nasdaq Composite added 0.95per cent.
MSCI’s gauge of stocks across the globe gained 0.06per cent.
Emerging market stocks rose 1.19per cent. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.04per cent higher, while Japan’s Nikkei per cent.
U.S. crude futures climbed 4.9per cent on Tuesday settling at US$49.93 a barrel after Saudi Arabia pledged additional, voluntary oil output cuts. Brent crude futures also jumped 4.9per cent, settling at US$53.60.
The dollar index fell 0.433per cent, against a basket of major currencies following China’s decision to lift its official yuan exchange rate by its highest margin since it abandoned a dollar peg in 2005.
The benchmark U.S. 10-year notes last fell 12/32 in price to yield 0.9549per cent, from 0.917per cent late on Monday.
Bitcoin traded at US$34,077.96, up 6.41per cent.
Spot gold XAU= added 0.4per cent to US$1,949.46 an ounce.
(Reporting by Imani Moise; Editing by Sam Holmes)
TSE – Asian stocks mixed as markets await US runoff results
