Asian stocks retreat ahead of US midterms, oil steadies
SPY•Asian stocks fell ahead of US midterm voting, with MSCI’s Asia-Pacific ex-Japan index down 1.4% and South Korean shares falling as much as 4.1%. Brent crude steadied, rising 0.5% to $105.30 a barrel in Asian trading.
1. Asian shares decline
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.4% to its lowest level since October 23. South Korean shares dropped as much as 4.1%, while Taiwanese shares fell 3.3%; Australian shares rose 0.3%.
2. Markets await US votes
Investors were watching the US midterm elections and the Treasury’s quarterly refunding announcement. Opinion polls favoured Democrats to win the House, while the Senate remained too close to call. The US 10-year Treasury yield rose 2.1 basis points to 4.913%.
3. Oil steadies, RBA hikes
Brent crude rose 0.5% to $105.30 a barrel after falling more than 7% on Monday. Australia’s central bank raised its cash rate target by 25 basis points to 4.85% in a 6-3 vote; the Australian dollar slipped 0.3%.
