Asian markets fall in light of U.S. elections

Asian markets fall in light of U.S. elections

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The US presidential elections have caused Asian stock markets to fall on Monday, November 5, 2012, as investors shied off risks due to the uncertainty in the outcome of the elections.

Markets normally do not favor uncertainty, as in the case in the upcoming US presidential elections. Mitt Romney is currently challenging President Barrack Obama to lead the country, as the electoral race seems to be tied, just one day before elections.

If votes are tied on Wednesday, the results could be delayed for weeks, and this could adversely affect markets. Analysts from Hong Kong based Credit Agricole CIB said that if the elections do not provide a clear cut outcome, markets could suffer, due to the prolonged period of uncertainty.

On Monday, Hang Seng from Hong Kong lost 0.2 percent to 22,066.59; while Japan’s Nikkei 225 index dropped to 9,026.22, a fall of 0.3 percent. South Korea’s Kopi also fell 0.4 percent to reach 1,910.62. Australia’s S&P/ASX 200 was flat at 4,461.30 while Philippines PSE rose by 1 percent. However benchmarks in Singapore and mainland China fell as well.

In currencies, the Euro remained unchanged at $1.289, while the dollar rose from 80.42 yen to 80.53 yen, late on Friday. However, two of South Korea’s biggest auto-manufacturer’s shares plummeted after gas mileage on their cars were incorrectly stated in the US. Kia Motors Corp. fell 7.1 percent, while Hyundai Motor Co. dropped 6.7 percent.