Asia shares lower as political risk brews

TOKYO — Asian stocks were mostly lower Friday as investor worries remained about the U.S. political turmoil over an investigation into possible Russian coordination with President Donald Trump’s campaign.

KEEPING SCORE: Japan’s benchmark Nikkei 225 dipped 0.2 percent to 19,510.96 in morning trading. Australia’s S&P/ASX 200 edged down nearly 0.5 percent to 5,711.10. South Korea’s Kospi was little changed at 2,287.30. Hong Kong’s Hang Seng was virtually unchanged at 25,131.74. The Shanghai Composite slipped nearly 0.1 percent to 3,087.38.

BRAZIL FACTOR: Markets are also being shaken by a deepening political crisis in Brazil, where President Michel Temer is facing calls for his resignation amid allegations of corruption. Stocks and the currency have plunged there.

U.S. FACTOR: U.S. shares rallied, partly cheered by a positive report jobs data, but it followed the worst drop in eight months. Fears are growing recently Trump may have trouble enacting tax cuts and other business-friendly policies.

WALL STREET: The Standard & Poor’s 500 index rose 8.69 points, or 0.4 percent, to 2,365.72. The Dow Jones industrial average added 56.09 points, or 0.3 percent, to 20,663.02. The Nasdaq composite index gained 43.89 points, or 0.7 percent, to 6,055.13.

THE QUOTE: “Given the heightened level of uncertainty, I suspect traders will remain in a kind of Investor Purgatory where risk aversion dominates and fear mounts that the investigation could open up a whole new can of worms which will do little more than compound the markets current panic syndrome,” said Stephen Innes, senior trader at OANDA.

The New York Times

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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