File Pic
Asian stocks were mixed on Wednesday, as reported by AP, with markets facing pressure from a rising US dollar and uncertainty surrounding the upcoming US elections. Additionally, geopolitical tensions added to the unease, with oil prices and US futures slipping. According to AP, this came after Israel confirmed that an airstrike outside Beirut earlier in October killed a key Hezbollah official, who had been expected to succeed the group's leader, following his death in a previous Israeli strike.
Japan's benchmark Nikkei 225 dropped by 0.3%, closing at 38,300.81, as the dollar strengthened against the yen. However, Tokyo Metro Co.'s stock surged 43% in its trading debut, raising ¥348.6 billion ($2.3 billion) in what was Japan's largest IPO since SoftBank Corp. went public in 2018, AP reported.
Chinese markets, meanwhile, rose for a second straight day after the central bank cut its one-year and five-year Loan Prime Rates on Monday. AP reports that Hong Kong's Hang Seng climbed by 1.7% to 20,841.73, while the Shanghai Composite added 0.8%, reaching 3,311.87. State media in China suggested the government may issue ¥2 trillion ($281 billion) in special bonds to stabilise the market and ease hidden debt pressures. Still, Stephen Innes, managing partner at SPI Asset Management, remarked that despite the bold measures, there's a sense that Beijing is still in reactionary mode, playing catch-up rather than being ahead of the game.
Elsewhere, Australia's S&P/ASX 200 remained relatively flat at 8,207.20, while South Korea's Kospi gained 1.3% to 2,594.23. Taiwan's Taiex slipped 0.8%, and India's Sensex rose by 0.2%.
On Wall Street, stocks saw a quieter day on Tuesday. The S&P 500 edged down by less than 0.1% to 5,851.20, while the Dow Jones Industrial Average dipped similarly to 42,924.89. The Nasdaq Composite, however, gained 0.2%, reaching 18,573.13. Stocks have faced increasing pressure as Treasury yields continue to rise, with the 10-year Treasury yield holding steady at 4.20%, up from 4.08% on Friday. Higher yields typically make investors more cautious about high-priced stocks, which many analysts say are already overvalued, AP noted.
US economic data remains stronger than expected, with many now hoping the economy can avoid a severe recession. Gregory Daco, chief economist at EY, commented, "What appears to be unfolding is a soft-landing scenario only the most optimistic could have dreamed of." However, this resilience has led traders to scale back expectations of how much the Federal Reserve will cut interest rates.
In energy trading, AP reported that US benchmark crude dropped by 10 cents to $71.64 per barrel, while Brent crude fell 9 cents to $75.95 per barrel.
In currency markets, the US dollar rose to ¥152.00 from ¥151.03, while the euro fell slightly to $1.0802. Markets remain cautious as they navigate through economic, geopolitical, and monetary policy uncertainties.
(With inputs from AP)
