Asian Stock Market: Trades mixed as US stock futures recede on election jitters

  • Asian shares fail to track Wall Street’s gains as global market portrays pre-NFP trading lull amid US election updates.
  • Trump’s lead in Pennsylvania, Georgia gets trimmed minute-after-minute, Biden runs faster towards the White House.
  • RBA statement talks down further rate cuts, RBNZ’s inflation expectations improve.

Asian equities gyrate amid mixed signals from the US elections and geopolitical factors elsewhere in Asia-Pacific. That said, MSCI’s index of the stated region’s shares, ex-Japan, drop 0.15% intraday whereas Japan’s Nikkei 225 rise over 1.0% during Friday’s pre-European session open trading.

Although US President Donald Trump struggles to keep the throne, Republicans are more likely to hold the rights in the Senate, which in turn offers another mixed Congress of the world’s largest economy. Fears of the same seem to weigh on the risk tone while joining Fed Chair Jerome Powell’s signal of tail risk to the economy.

Elsewhere, Australia’s Trade Minister Simon Birmingham conveyed disappointment over a Chinese industry report suggesting discrimination with the Aussie players. Further, the coronavirus (COVID-19) woes get strong in the US with Thursday’s daily record of 120,000+ new infections.

It should also be noted that the RBA’s monetary policy statement defied any more rate cuts but the Treasury Secretary highlight the need for fiscal stimulus. On the contrary, Japan’s Finance Minister Taro Aso said, “it is up to the BOJ to decide on monetary policy.” Moving on, New Zealand’s Inflation Expectations for the fourth quarter (Q4) 2020 rose past-1.43% to 1.59% QoQ while the economic calendar stays silent in the rest of the Asia-Pacific zone.

That said, S&P 500 Futures drop 0.60% while stocks in China and Hong Kong repeat the same tunes. On the contrary, Australia’s ASX 200 and New Zealand’s NZX 50 prints mild gains like Indonesia’s IDX Composite and India’s BSE Sensex.

While the swing states in the US are yet to announce final results, the presence of the October month American employment data on the calendar, up for publishing at 13:30 GMT, also probe the equity bulls. The US dollar index (DXY) benefits from the cautious sentiment while bouncing off October 21 low, marked the previous day.

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