Market Overview

Asian Markets Lower On Unlikely US Stimulus Before Election

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Asian Markets Lower On Unlikely US Stimulus Before Election

Major U.S. indices closed lower on Wednesday as negotiations for a second coronavirus stimulus remain stalled. Dow Jones declined 0.68%, S&P 500 shed 0.66% and the Nasdaq 100 closed 0.80% lower. The selling could be seen in Thursday's market sessions across Asia, with most markets trading lower.

Japan's Nikkei 225 index is trading 0.56% lower at press time, led by selling across sectors. Top bank and technology shares are dragging the index lower. The Tertiary Industry Activity Index grew 0.8% month-over-month, which is a healthy sign for businesses. Investors will be watching September's Consumer Price Index data scheduled late Thursday, expecting a 0.4% decline year-over-year.

China's Shanghai Composite index is trading 0.03% lower — with gains in financials and energy stocks offset by services, consumer staples, and healthcare names. Yesterday, the Consumer Price Index grew 0.2% month-over-month in September, missing the consensus of 0.3%. The Producer Price Index declined 2.1% in September, surpassing expectations of a 1.8% decline. No major economic events are scheduled for Thursday.

Hong Kong's Hang Seng index has shed 1.39% at publication time, driven by financials, real estate, and industrial stocks. No major economic events are scheduled for Thursday.

Australia's S&P/ASX 200 index is the only shining light in the day — trading 0.64% higher, as investors cheer the Reserve Bank of Australia Governor Philip Lowe's remarks on supporting jobs, economy, and hints of lowering the cash rate in November. Yesterday, September's unemployment rate saw an uptick to 6.9% but fell below the expectations of 7.1%. Investors will be watching the Housing Industry Association's new home sales growth numbers scheduled late Thursday.

India's Nifty 50 index is trading 0.17% lower after the index recovered on Wednesday, pending a court hearing on loan interest waivers. Information technology stocks are down sharply, partially offset by gains in auto and realty shares. India's trade balance data is scheduled for Thursday.

South Korea's KOSPI index is down sharply, trading 1.22% lower at press time. Construction, information technology, financials, and industrial shares are falling in Thursday's session. South Korea's September trade balance showed a surplus of $8.7B, with 7.6% year-over-year growth in exports. Investors will watch unemployment data scheduled for release Thursday.

Forex Trading: U.S. Dollar index futures are trading 0.04% higher to 93.405. U.S. Dollar has gained 0.13% against the Japanese Yen to 105.28, and 0.14% against the Chinese Yuan to 6.723.

ETFs To Watch: iShares Core MSCI Emerging Markets ETF (NYSE: IEMG), which closed 0.62% lower Wednesday and is trading around 52-week highs.

 

 

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