Asia stocks fall ahead of tight US election - Boston News, Weather, Sports | FOX 25 | MyFoxBoston

Asia stocks fall ahead of tight US election

Posted: Updated:

PAMELA SAMPSON, AP Business Writer 

BANGKOK (AP) — Asian stock markets fell Monday as a looming leadership change in China and uncertainty about the outcome of the U.S. presidential election reduced appetite for riskier investments.

The race between President Barack Obama and Republican challenger Mitt Romney is virtually tied one day ahead of the election, generating an atmosphere of uncertainty that markets normally dislike.

Investors could awaken Wednesday without a clear winner. If the election comes down to a thin margin in a swing state such as Ohio, the outcome could be delayed for days or weeks.

"The worst case scenario for markets is for a prolonged period of uncertainty if the results produce no clear cut result," said analysts at Credit Agricole CIB in Hong Kong.

Japan's Nikkei 225 index fell 0.7 percent to 8,986.99. Hong Kong's Hang Seng lost 0.4 percent to 22,026.05. South Korea's Kospi shed 0.7 percent to 1,906.29. Benchmarks in mainland China and Singapore also fell. The Philippines PSEi rose 1 percent. Australia's S&P/ASX 200 rose 0.4 percent to 4,476.50.

A key political event also takes place this week in China, the world's No. 2 economy. Thursday marks the opening of the Communist Party congress — the once-in-a-decade forum used to name China's top leadership.

Tom Kaan, head of equity sales at Louis Capital Markets in Hong Kong, said it would be a "cause of concern" if China's new leaders do not take quick action to boost employment, particularly among the ranks of middle-income earners who have lost jobs amid the country's economic slowdown.

"Unemployment is one of the biggest concerns which nobody seems to be focusing on," he said. Investors are also hoping to see progress in the deregulation of China's financial markets.

Meanwhile, shares of South Korea's two largest carmakers plunged after the companies acknowledged overstating gas mileage on hundreds of thousands of cars sold in the U.S. Hyundai Motor Co., the country's largest carmaker, plummeted 7.4 percent and second-largest Kia Motors Corp. sank 6.5 percent.

The inflated mileage was uncovered in an audit of test results by the U.S. Environmental Protection Agency. The EPA's inquiry into the overstated figures is continuing.

Toyota Motor Corp. rose 2.2 percent after public broadcaster NHK reported that Japan's No. 1 carmaker plans to raise its operating profit estimate by around 50 billion yen ($621 million) for the year ending March. Toyota will report quarterly earnings later in the day.

Japanese electronics firms continued to take hits. Sharp Corp. dropped 6.7 percent. Panasonic Corp. fell 4.4 percent. Fujitsu Ltd. lost 4.1 percent.

Benchmark oil for December delivery was up 26 cents to $85.11 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $2.23, or 2.2 percent, to close Friday in New York at $84.86 a barrel — its lowest level since July 10.

In currencies, the euro fell to $1.2824 from $1.2829 late Friday in New York. The dollar was unchanged at 80.42 yen.

  • Your MoneyMore>>

  • OKCupid, Facebook not alone in studying consumers

    OKCupid, Facebook not alone in studying consumers

    Tuesday, July 29 2014 4:51 PM EDT2014-07-29 20:51:44 GMT
    Think you're in control? Think again. This week, OKCupid became the latest company to admit that it has manipulated customer data to see how users of its dating service would react to one another. The New York-based Internet company's revelation follows news earlier this month that Facebook let researchers change news feeds to see how it would affect users' moods.
    Think you're in control? Think again. This week, OKCupid became the latest company to admit that it has manipulated customer data to see how users of its dating service would react to one another. The New York-based Internet company's revelation follows news earlier this month that Facebook let researchers change news feeds to see how it would affect users' moods.
  • New York's microbrew industry growing

    New York's microbrew industry growing

    Monday, July 28 2014 8:39 PM EDT2014-07-29 00:39:52 GMT
    Local and small beer brewing companies have something to toast. The Brewers Association says microbrew sales grew in the first half of this year; up 18 percent over the same period last year. This comes at a time when overall domestic beer consumption is flat.Ethan Long, one of the owners of the Rockaway Brewing Company in Long Island City, started brewing beer two years ago.
    Local and small beer brewing companies have something to toast. The Brewers Association says microbrew sales grew in the first half of this year; up 18 percent over the same period last year. This comes at a time when overall domestic beer consumption is flat.Ethan Long, one of the owners of the Rockaway Brewing Company in Long Island City, started brewing beer two years ago.
  • Maryland casino to interview workers from closing Atlantic City casinos

    Md. casino eyes workers from closing Atlantic City casinos

    Friday, July 25 2014 4:32 PM EDT2014-07-25 20:32:23 GMT
    AP photoAP photo
    A Maryland casino is looking to hire some of the soon-to-be-jobless Atlantic City casino workers. Maryland Live! is holding job fairs next week at the Sheraton hotel across from the Atlantic City Convention Center. The Hanover, Maryland casino held a similar recruitment effort in January when The Atlantic Club shut down.
    A Maryland casino is looking to hire some of the soon-to-be-jobless Atlantic City casino workers. Maryland Live! is holding job fairs next week at the Sheraton hotel across from the Atlantic City Convention Center. The Hanover, Maryland casino held a similar recruitment effort in January when The Atlantic Club shut down.
Powered by WorldNow

25 FOX Drive
Dedham, MA 02026

Phone (781) 467-2525

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices