MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.3%, extending Monday’s 0.3% decline
Asian shares outside Japan dropped on Tuesday as investors pondered what a Trump victory would mean for China, while the yen resumed its decline, prompting fresh warnings from officials after last week’s suspected intervention.
Europe is set to open lower, with EUROSTOXX 50 futures 0.3% lower. S&P 500 futures added 0.2% and Nasdaq futures rose 0.3% after dovish Fed comments fuelled bets of more U.S. rate cuts this year, lifting Wall Street.
MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.3%, extending Monday’s 0.3% decline. Japan returned from a public holiday and the Nikkei index added 0.3%.
Overnight, investors continued to digest the fallout from the attempted assassination on Saturday of former U.S. President Donald Trump, who nominated J.D. Vance on Monday as his vice presidential running mate.
Opinion polls show a close race between Trump and President Joe Biden, though Trump leads in several states that are likely to decide the election.
The Dow Jones reached a record closing high, thanks to energy and banking shares. Bitcoin climbed, gold jumped towards a record high and the yield curve steepened as investors favoured so called Trump-victory trades.
J.D. Vance sits in the camp of taking China on head-first in a bid for improved trade deals for the U.S., and this will only weigh on sentiment towards China, according to Chris Weston, head of research at Pepperstone.
The Shanghai Composite index dropped 0.1%, while Hong Kong’s Hang Seng index shed 1.4%, having already declined 1.5% the day prior as weak economic data from China heightened the risk that Beijing could miss its 5% growth target this year, barring forceful stimulus.
Both Taiwanese and South Korean shares rose 0.2%.
