SYDNEY/NEW YORK: Asian stocks slipped on Tuesday as investors adjusted risk exposure heading into the U.S. election and as a deadline for Washington to pass an economic stimulus bill approached while Europe reported record daily coronavirus infections.
MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.11% lower after U.S. stocks ended the previous session in the red. Australian and Japanese markets also dipped and MSCI’s gauge of stocks across the globe was 0.09% lower.
Chris Weston, the head of research at Melbourne brokerage Pepperstone, said while there were worries about the U.S. stimulus package, recent declines were likely due to positioning ahead of the Nov. 3 presidential election.
“Do you really want to hold those exposures into what could be a volatility event?” Weston said. “We’re getting into the Wild West territory where it becomes more whippy.”
Caution among investors globally was also driven by rising concerns about the risk of a disputed U.S. election outcome.
“Such an event would very likely upset global markets considerably until the U.S. reaches an accepted resolution,” said American Century co-CIO Keith Creveling. –Agencies
