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Asian stocks fall ahead of US midterm elections as oil steadies
Asian shares slip ahead of US midterm elections as oil prices steady, with Korean stocks hit hardest.
Key points
- MSCI's broadest Asia-Pacific index excluding Japan was down 0.9 per cent on Tuesday.
- Apple shares fell 2.8 per cent in after-hours trading after forecasting lower holiday-quarter gross margins.
- The Reserve Bank of Australia is widely expected to raise its cash rate target by 25 basis points.
Why it matters. ING analysts said that by tomorrow the market will have guidance on the midterm implications and the US Treasury's quarterly refunding announcement.
MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.9 per cent on Tuesday, led by a drop of as much as 3.8 per cent in Korean shares. Brent crude was last 0.1 per cent lower at $US104.72 ($A149.63), steadying after a fall of more than seven per cent on Monday. Apple shares fell 2.8 per cent in after-hours trading after the iPhone maker forecast lower holiday-quarter gross margins, citing rising memory-chip costs.
Latest updates
Asian stocks fall ahead of US midterm elections as oil steadies
Stocks in Asia slipped at the start of trade on Tuesday as investors grew nervous ahead of voting in the US midterm elections, according to The West Australian. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.9 per cent. Korean shares led the declines, dropping as much as 3.8 per cent. Oil prices steadied after the previous session's sharp fall. Traders are watching the US vote closely for signals about the policy direction of the next Congress. The report does not give further details on the outlook for markets once voting begins.
How the US midterm elections could move 3 key types of ASX Stocks
Donald Trump’s fight to retain control of Congress in the 3 November US midterms will carry direct consequences for Australian markets, whatever the outcome. Democrats must flip four seats in both the House of Representatives and Senate to overturn narrow Republican majorities. Polls favour the Democrats to reclaim the house, but the Senate contest is too close to call. Here’s how the vote could steer demand for renewables, deflate AI stocks and spark volatility, triggering ripples across Australian markets. Republican hold As Americans grapple with high living costs made worse by rising fuel prices, the chances of Republicans retaining both chambers of Congress have waned, polling suggests . If Trump’s Republicans were to prevail, market watchers expect an immediate bump on Wall Street that would lift markets around the world, including in Australia. Rob Talevski, chief executive of Webull Securities Australia, says maintaining control of Congress would pave the way for Trump to deliver signature fiscal stimulus, including a proposed $US5,000 payment to every adult American. “It’s going to be somewhat like a Santa rally, ‘Here’s your Christmas present’. We’re going to see markets rally on that,” says Talevski. But Talevski says any post-election sugar hit could quickly collide with the economic headwinds hitting the US and other advanced economies. “It would be short-term, and.