The world awaits with baited breath as the US Presidential Elections are nearing. The Asian stock markets reduced in value on Monday, September 26, 2016. The reduction is because of the effects of the United States political environment. As the US heads to polls, investors are waiting to see which way the wind blows in Clinton Vs. Trump.
However, the value of the Asian stock markets is also lower because of the anticipated Oil Producing and Exporting Countries (OPEC) meeting. The OPEC producers will engage in an informal meeting in Algeria, during the energy conference.
Here’s a quick update on the stock market conditions around Asia:
South Korean and Chinese Markets
The South Korea Kopi reduced by 6.96 points. The closing value after the 0.34% reduction is 2,047.11. The Hang Sang index showed a reduction of 1.42% on Hong Kong. The Asian stock markets further reduced in the Chinese mainland. The Shanghai composite closed at 2,981.24. This represents a reduction of 52.64 points. The Shenzhen composite closed at 1,966.60. This is a lower value by 41.51 points.
Japanese Financial and Stock market Nikkei 225
The lower values of the Asian stock markets are also seen in Japan. The Nikkei 225 closed at 16,544.56. This is a reduction of 1.25%. The Japanese stock market was the biggest loser om Monday. However, the yen improved in value after the speech by the Governor of the Bank of Japan (BOJ). At the Osaka business meeting, Haruhiko Kuroda explained that the central bank will utilize appropriate policy measures to achieve the 2% inflation goal. The key policy decision of the BOJ is to reduce the short-term and the long-term interest rate.
Australian Financial and Stock Market
While Australia isn’t a part of the Asian continent, it has a significant impact and deep ties with the Asian Stock Market.
The value of the ASX 200 closed at 5,431.40. The financial industry, that is heavily-weighted, reduced in value by 0.13%. The energy industry reduced in value by 0.07%. However, the material sector rose by 0.26%. The banking stocks in Australia generally increased in value. The ANZ rose by 0.04%. The stock value of the Commonwealth Bank of Australia remained constant.
Asian stock markets on Tuesday, September 27, 2016
Asian stock markets were mixed on Tuesday as traders followed the U.S. presidential debate between candidates Hillary Clinton and Donald Trump.
While Hong Kong’s Hang Seng index advanced 0.4 percent to 23,409.97 and Tokyo’s Nikkei 225 shed 0.3 percent to 16,490.41, Sydney’s S&P-ASX 200 added 0.4 percent to 5,497.40. The Shanghai Composite Index was unchanged at 2,981.10. South Korea’s Kospi too gained 0.9 percent to 2,017.94.
Investors were watching the Clinton-Trump debate in a tight race that has unnerved markets seeking certainty about the future of U.S. policy. Trump has called for controls on trade and immigration, while Clinton is seen as more engaged with Asia. Uncertainty about the election outcome has made global markets risk-averse. Recent polls indicate close popularity between the two presidential candidates for the November 2016 elections.
Analyst’s Take on Impact of US Presidential Elections on Asian Stock Markets
“Markets are searching for the least worse option between the two U.S. candidates. One is a known market bad, the other an unknown bad,” said Michael McCarthy of CMC Markets in a report. “Any ramping up of populist rhetoric would likely rattle investors. Any perception that the outsider candidate won the debate could bring a market rout.”
If the debate performance of Donald Trump is popular, then the Asian stock markets investors will increase investments in safe haven instruments, Japanese bonds, and gold.