Asian stocks struggle on US election worries
> Further probe into presidential candidate Hillary Clinton’s emails fuels fresh global market uncertainty
HONG KONG: Asian traders moved cautiously yesterday as news that the Federal Bureau of Investigation (FBI) would further probe Hillary Clinton’s emails fuelled fresh uncertainty about the outcome of the US presidential election just eight days before the vote.
Traders globally had broadly expected Democratic candidate and Wall Street favourite Clinton to sweep to victory, with her rival Donald Trump considered a loose cannon.
But FBI chief James Comey’s announcement that he was again looking at her use of a private email server while serving as secretary of state sent shudders through trading floors, with US stocks tumbling and the dollar taking a hit.
The sell-off filtered through to Asia, where dealers are also nervously awaiting a series of key events this week, including central bank policy meetings in Japan and the US, and the release of US jobs figures on Friday.
Trading conditions this week will be “slippery and shifty”, said Stephen Innes, senior trader at forex firm OANDA.
“The calendar is full of high-risk events making for a treacherous path to navigate in the lead-up the monumental Nov 8 US election,” he said in a note.
Tokyo’s Nikkei ended 0.1% lower and Shanghai closed 0.1% off, while Seoul slipped 0.6% and Taipei was 0.2% off.
But Hong Kong reversed early gains to sit 0.2% higher in the afternoon and Sydney rose 0.6%.
The development also caused the dollar to wobble, falling to ¥104.73 (RM4) in New York on Friday from ¥105.30 earlier in the day in Asia.
Yesterday it struggled to bounce back, sitting at ¥104.80, while it also edged up against the pound and euro.
It held most gains against the Mexican peso on worries about a possible win by Trump, who has promised to tear up a trade deal between the two countries and build a wall on their border.
The dollar bought 18.9340 pesos (RM4.2) in Asia, having broken 19.10 pesos on Friday, and well up from the 18.8190 on Thursday.
Oil prices also fell – dragging energy firms lower – following Opec’s failure last week to hammer out details of an agreement to cut output and ease a supply glut. The lack of a deal in Vienna on Friday raised questions about the group’s ability to deliver the reductions. It came just days after Opec member Iraq and non-member Russia said they felt they should be exempted. – AFP
A man walks beside a model of a Garuda Indonesia airplane at the airline’s headquarters in Jakarta, Indonesia, yesterday.