Stock market today: Asian shares are mixed after Wall Street drifts ahead of US Election Day
NEW YORK– Stock prices in Asia were mixed early on Tuesday after US stock indexes turned lower a day before the US presidential election.
This week will bring several potential flashpoints, including Election Day in the United States. But the results may not be known for a while as officials count all the votes, and that could lead to sharp swings as markets hate uncertainty.
US futures were largely unchanged on Tuesday.
Adding to the potential for volatility, the Federal Reserve will also meet to discuss interest rates later this week. There is widespread expectation that the country will cut its key interest rate for the second time in a row.
Investors are also hoping that the Chinese government will announce stimulus measures for the world’s second-largest economy.
Japan’s Nikkei 225 index rose 1.3% to 38,552.67, reopening on Monday after a holiday.
South Korea’s Kospi fell 0.7% to 2,569.75, while the S&Australia’s P/ASX 200 fell 0.6% to 8,117.30.
The Standing Committee of China’s National People’s Congress is meeting this week and analysts say the government may approve major spending initiatives to stimulate the economy. economic growth amid troubles for the country’s real estate sector.
The official caused by the pandemic and by a collapse of the economy. real estate market in recent years.
Hong Kong’s Hang Seng rose 0.1% to 20,597.30 and the Shanghai Composite index rose 0.4% to 3,323.26.
On Monday the S&The P500 fell 0.3% to 5,712.69, remaining close his record set last month. The Dow Jones Industrial Average fell 0.6% to 41,794.60, while the Nasdaq index fell 0.3% to 18,179.98.
Intel fell 2.9% and chemical maker Dow fell 2.1% in their first trading since receiving notice that they will no longer be in trouble. included in the Dow Jones Industrial Average. Warren Buffetts Berkshire Hathaway fell 2.2% and was one of the heaviest weights in the market after reporting a decline in operating profit for the last quarter.
But the majority of the shares within the S&The P500 rose, including a 2.8% gain for Fox after it reported stronger-than-expected earnings.
The hope that has recently pushed US stock indexes to records is that the US economy can remain resilient and avoid a long-feared recession, in part because of the coming rate cuts expected from the Fed.
The broad US stock market is up historically regardless of which side wins the White House. And in 2020, US stocks rose immediately after Election Day and continued to rise even after the previous Election Day President Donald Trump refused to budge and questioned the results, creating a lot of uncertainty. Much of that rally was due to excitement about the potential of a vaccine against COVID-19, which had just shut down the global economy.
A Trump victory would be less of a surprise to markets this time than in 2016, when Treasury yields soared on expectations for tax cuts that could further inflate the national debt or fuel a stronger U.S. economy. Treasury yields have already risen in recent weeks, partly due to rising expectations among some of a Trump victory.
On Monday, government bond yields gave back some of those gains. The yield on the 10-year government bond fell to 4.29% from 4.38% at the end of Friday.
Another investment that has become a market barometer for Trump’s perceived chances of victory swung sharply during the day. After toggling between losses and gains all morning, Trumpmedia & Technology Group ended up with 12.4%.
On the oil market, the price for a barrel of US crude fell 7 cents to $71.40 on Tuesday morning. On Monday, yields rose 2.8% after Saudi Arabia and other oil producers said so they would postpone the plans to increase the amount of crude oil they produced.
Brent crude, the international standard, added 12 cents to $75.20. On Monday, the oil price rose 2.7% per barrel. Brent prices are still low so far this year, partly due to concerns about how much demand will come from China given the economic challenges.
In currency transactions, the dollar rose from 152.10 yen to 152.33 Japanese yen. The euro fell from $1.0880 to $1.0876.
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AP Business Writer Stan Choe contributed.