Most Asian Markets Extend Losses As US Vote Approaches
Umer Jamshaid Published November 04, 2016 | 10:35 AM
HONG KONG, Nov 4, (UrduPoint / Pakistan Point News - 04th Nov, 2016 ) - A sharp fall in Tokyo led losses in most major Asian stock markets Friday as traders fret over next week's US election, with the Dollar weakening further and safe-haven gold maintaining its lustre.
The pound also built on Thursday's gains to sit at one-month highs after judges told Britain's government it must approve June's referendum to leave the European Union. Trading floors around the world have been plunged into turmoil this week as market favourite Hillary Clinton's lead over maverick rival Donald Trump has been slashed days before the November 8 poll.
The former secretary of state is considered by most investors to be a safer, more stable bet than Trump, who is seen as a loose cannon, with policies many fear could wreck the world's top economy.
"Markets are currently attempting to strike the right balance between the greater probability of a Clinton win and the possibility of a significant selloff on a Trump victory," Ric Spooner, chief market analyst in Sydney at CMC Markets, said.
On Wall Street the S&P 500 and Nasdaq fell for the eighth straight day, while the Dow ended in the red for the sixth straight session. And the Vix volatility index, which measures market fear, soared 14 percent to its highest levels since Britain's shock vote in June to exit the European Union.
Those losses spread to Asia again, with Tokyo -- which was closed for a holiday Thursday -- ending the morning 1.4 percent lower. - Sterling stronger - ===================== Adding to selling on the Nikkei was a surge in the Yen against the dollar as traders rush to safe investments while speculation swirls the Federal Reserve will hold off an expected interest rate hike in December if Trump wins owing to fears about the economy.
The greenback bought 102.90 yen in Asia from 102.93 yen in New York and well down from the 105.30 yen mark touched earlier this week. Sydney was down 0.7 percent, Seoul fell 0.2 percent and Singapore slipped 0.3 percent while Hong Kong was flat.
There were also losses in Wellington. However, Shanghai edged up 0.2 percent. The pound pushed on against the dollar and euro after Thursday's rally that came after the High Court's decision in London, which throws Prime Minister Theresa May's plans for a quick withdrawal into doubt.
Sterling was heading towards the $1.25 level in Asia, well up from the sub $1.22 seen on Monday. The search for safety has also sent traders into gold, which is considered a hedge against turmoil.
The yellow metal was at $1,302 in Asia -- a one-month high. The next big event before the election is the release later Friday of US jobs data, which could cement expectations for a rate hike next month.
- Key figures around 0230 GMT - ================================= Tokyo - Nikkei 225: DOWN 1.4 percent at 16,888.78 (break) Hong Kong - Hang Seng: UP 6.20 points at 22,689.71 Shanghai - Composite: UP 0.2 percent at 3,135.71 Pound/dollar: UP at $1.2477 from $1.2463 Wednesday Euro/pound: DOWN at 89.00 pence from 89.12 pence Euro/dollar: DOWN at $1.1105 from $1.1107 Dollar/yen: DOWN at 102.90 yen from 102.93 yen Oil - West Texas Intermediate: UP 15 cents at $44.81 per barrel Oil - Brent North Sea: UP 15 cents at $46.50 New York - Dow: DOWN 0.2 percent at 17,930.67 (close) London - FTSE 100: DOWN 0.8 percent at 6,790.51 (close)
Related Topics
Recent Stories
Saka and Odegaard start for Arsenal, Guerreiro in Bayern midfield
Qatar PM says re-evaluating Israel-Hamas mediation role
Govt spokesperson terms allegations of PTI's Marwat against Saudi Arabia 'heinou ..
Minister appreciate UAE’s support for Pakistan economic challenges
Manchester City v Real Madrid Champions League starting line-ups
MIGA's support Pakistan in attracting foreign investments: Federal Minister for ..
Walker returns to captain Man City for Real Madrid clash
Action taken against price list violations in Khanewal district
DC chairs review meeting of DEG
Turkey accuses Israel's Netanyahu of using war 'to stay in power'
Pakistan ranked 5th most vulnerable country to climate change. Tirmizi
Nadal comeback ends in Barcelona Open second round
More Stories From Business
-
Minister appreciate UAE’s support for Pakistan economic challenges
4 hours ago -
MIGA's support Pakistan in attracting foreign investments: Federal Minister for Finance, Muhammad Au ..
4 hours ago -
International financial partners to invest $1.8 bln in KP: Advisor
5 hours ago -
Uzbek envoy invites FPCCI leadership to attend Tashkent Int'l Investment forum
6 hours ago -
Women development imperative for sustainable economic prosperity: Lansana Wonneh
6 hours ago -
Finance Minister, highlights geo-economic fragmentation, its impact on Pakistan
6 hours ago
-
High Tobacco tax prevails over propaganda, reduces cigarette consumption
8 hours ago -
SECP grants registration to first digital insurer
8 hours ago -
European stock markets rebound after heavy losses
8 hours ago -
SECP files complaint against two individuals on violation of trading
8 hours ago -
Govt prioritize to peruse economic reform agenda for sustainable economic development: Minister
8 hours ago -
IMF says global debt levels face 'Great Election Year' risk
9 hours ago