The MSCI’s broadest index of Asia-Pacific shares outside Japan declined 0.25 per cent, S&P 500 futures skidded 0.38 per cent, while the dollar was on the back foot
Asian markets wobbled and U.S. stock futures slipped on Wednesday after Democratic Vice President Kamala Harris and Republican Donald Trump clashed in a keenly-awaited U.S. presidential debate.
The presidential hopefuls battled over abortion, the economy, immigration and Trump’s legal woes at their combative first debate.
That left investors jittery in Asian trade as markets also braced for U.S. inflation numbers that could influence the Fed’s policy moves next week.
The MSCI’s broadest index of Asia-Pacific shares outside Japan declined 0.25 per cent, S&P 500 futures skidded 0.38 per cent, while the dollar was on the back foot.
Harris’ late entry in the presidential race after President Joe Biden’s withdrawal in July has tightened the race, prompting a reversal of trades that were put in place on expectations of a second Trump presidency.
While the debate is unlikely to sway near-term monetary policy, investors are focusing on fiscal policies and plans for the economy from the candidates.
I don’t think there’s a lot for markets here, according to Rob Carnell, ING’s regional head of research for Asia-Pacific. I think Harris appears to be managing Trump quite well.
You’d expect if he was doing better, that you’d see a strong dollar coming out of this. So I suppose that is the way the market is looking at it. It is a slight lean towards Harris, he added.
The dollar index, which measures the U.S. currency against six rivals, was 0.21 per cent lower at 101.43 in Asian hours.
Japan’s Nikkei declined 0.8 per cent, while Chinese stocks tumbled again. The Shanghai Composite index was down 0.75 per cent while the blue-chip index declined 0.16 per cent. Hong Kong’s Hang Seng index slid 1 per cent.
