Asian stocks retreat ahead of US midterms, oil steadies
SPY•Asian stocks fell as investors weighed tech spending and earnings ahead of US midterm voting, with South Korean shares down as much as 4.1%. Brent crude rose 0.5% to $105.30 a barrel, while polls favored Democrats to win the House and showed the Senate race too close to call.
1. Asian shares fall
Asia-Pacific shares outside Japan fell 1.4%, led by declines of as much as 4.1% in South Korea and 3.3% in Taiwan. Chinese shares dropped 1.4%, while Australian shares rose 0.3% after the Reserve Bank of Australia raised its cash rate target in a 6-3 vote.
2. Investors eye US vote
Investors prepared for US midterm voting, with polls favoring Democrats to win the House and the Senate too close to call. The US 10-year Treasury yield rose 2.1 basis points to 4.913%. Analysts said a surprise Republican sweep would likely lift yields and the dollar.
3. Oil steadies
Brent crude rose 0.5% to $105.30 a barrel as investors weighed the state of US-Iran peace talks. Apple shares fell 2.8% in after-hours trading after the company forecast lower gross margins for the holiday quarter and services revenue growth below Wall Street expectations.
