Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Asian shares drop as U.S. stimulus talks drag on

10/21/2020 | 10:40pm EST

(Corrects early market report filed at approx 0240 GMT to change quote attribution in paragraph four to Carlos Casanova)

SHANGHAI/NEW YORK, Oct 22 (Reuters) - Asian shares fell on Thursday and U.S. Treasury yields ticked lower as investors fretted over the slow pace of U.S. stimulus talks and a surge in global cases of COVID-19.

Global investor sentiment took a fresh hit over talks to boost the world's largest economy after U.S. President Donald Trump on Wednesday accused Democrats of being unwilling to craft an acceptable compromise on stimulus, following reports of progress earlier in the day.

It remains unclear whether stimulus negotiations would continue ahead of the U.S. presidential and congressional elections on Nov. 3.

"We still think that this deal will remain elusive in the sense that this amount that we are talking about, $1.88 trillion, that's about 9% of GDP, and 2.2 trillion which is Speaker Pelosi's package, is even higher at around 10% of GDP," said Carlos Casanova, senior economist for Asia at Union Bancaire Privee (UBP) in Hong Kong.

"Even if both sides do manage to reach an agreement, given the tight deadline ahead of the election it's unlikely that something like that would be able to go through the Senate smoothly."

In morning trade, MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.63%.

Australian shares gave up 0.6%, Seoul's Kospi was off 0.59% and and Chinese blue-chips dropped 1.1%.

The Nikkei was 0.69% lower.

Uncertainty over the passage of a bill to stimulate a pandemic-ravaged economy comes as the United States faces a new wave of COVID-19 cases.

Nearly two-thirds of U.S. states were in a danger zone of coronavirus spread and six, including election battleground Wisconsin, reported a record one-day increase in COVID-19 deaths on Wednesday.

Against the backdrop of stimulus talks and the spread of the novel coronavirus, Wall Street's three major averages closed lower on Wednesday after a choppy trading session.

The Dow Jones Industrial Average inched lower by 0.35%, while the S&P 500 lost 0.22%. The tech-heavy Nasdaq Composite dropped 0.28%.

On Thursday, the dollar was 0.11% higher against the yen at 104.67, while the euro notched down 0.19% to $1.1839.

But against a basket of major peers, the dollar appeared relatively unaffected by setbacks to stimulus talks, trading only slightler higher at 92.784.

"Markets are now pricing in a strong likelihood of a Biden Presidency perhaps even clean sweep of Congress, and this is weighing on the USD, as they view a less confrontational trade environment. They will also probably be factoring in a large fiscal stimulus early next year, with none of the hold up that is currently preventing a deal," Rob Carnell, chief economist at ING in Singapore said in a note.

The yield on benchmark U.S. 10-year Treasury notes ticked down to 0.8108% from a U.S. close of 0.816% on Wednesday.

In commodity markets, oil prices dropped, adding to sharp losses overnight, after higher U.S. gasoline inventories pointed to a deteriorating outlook for fuel demand as coronavirus cases soar.

U.S. West Texas Intermediate (WTI) crude futures fell 0.6% to $39.79 a barrel and Brent crude futures wer 0.48% lower at $41.358 a barrel.

(Reporting by Andrew Galbraith in Shanghai and Jessica DiNapoli in New York; editing by Jane Wardell and Michael Perry)


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
AUSTRALIAN DOLLAR / JAPANESE YEN (AUD/JPY) 0.15% 77.32 Delayed Quote.1.28%
BRITISH POUND / JAPANESE YEN (GBP/JPY) 0.22% 139.974 Delayed Quote.-3.11%
CANADIAN DOLLAR / JAPANESE YEN (CAD/JPY) 0.96% 81.457 Delayed Quote.-3.57%
DJ INDUSTRIAL 0.83% 30218.26 Delayed Quote.5.01%
EURO / JAPANESE YEN (EUR/JPY) 0.12% 126.254 Delayed Quote.3.51%
JAPANESE YEN / SWISS FRANC (JPY/CHF) -0.09% 0.8562 Delayed Quote.-3.81%
KOSPI COMPOSITE INDEX 1.32% 2724.22 Real-time Quote.22.28%
LONDON BRENT OIL 0.51% 49.04 Delayed Quote.-27.36%
NASDAQ 100 0.49% 12528.482731 Delayed Quote.42.76%
NASDAQ COMP. 0.70% 12464.232074 Delayed Quote.37.63%
NEW ZEALAND DOLLAR / JAPANESE YEN (NZD/JPY) -0.01% 73.398 Delayed Quote.0.49%
NIKKEI 225 -0.22% 26751.24 Real-time Quote.13.33%
S&P 500 0.88% 3699.12 Delayed Quote.14.50%
US DOLLAR / JAPANESE YEN (USD/JPY) 0.30% 104.14 Delayed Quote.-4.47%
WTI 0.97% 46.11 Delayed Quote.-26.86%
Latest news "Economy & Forex"
12:45aNIOC NATIONAL IRANIAN OIL : OPEC+ members agree to ease crude oil output cuts in January 2021
PU
12:35aTAKE FIVE : The clocks are ticking down
RE
12/04Coal mine accident in China's Chongqing kills 18
RE
12/04RESERVE BANK OF ZIMBABWE : Money Update as at 27 November 2020
PU
12/04ANALYSIS : Leisure & Hospitality Unemployment Double the National Average
PU
12/04U.S. not extending TikTok divestiture deadline, but talks will continue - sources
RE
12/04Biden says jobs report 'grim,' relief package needed now and in January
RE
12/04Cfius is "engaging with bytedance to complete the divestment and other steps necessary to resolve the national security risks" under trump's august 14 order -treasury spokeperson
RE
12/04ECLAC ECONOMIC COMMISSION FOR LATIN AMERICA AND : Reaffirms Importance of Regional Productive Integration for Achieving Greater Industrialization, Innovation and Social Protection in Times of Pandemic
PU
12/04ANALYSIS : Rising economic risks, but Fed likely won't tweak bond-buying for now
RE
Latest news "Economy & Forex"