Asia stocks fall ahead of tight US election - MyFoxAustin.com | KTBC Fox 7 | News, Weather, Sports

Asia stocks fall ahead of tight US election

Posted: Updated:

PAMELA SAMPSON, AP Business Writer 

BANGKOK (AP) — Asian stock markets fell Monday as a looming leadership change in China and uncertainty about the outcome of the U.S. presidential election reduced appetite for riskier investments.

The race between President Barack Obama and Republican challenger Mitt Romney is virtually tied one day ahead of the election, generating an atmosphere of uncertainty that markets normally dislike.

Investors could awaken Wednesday without a clear winner. If the election comes down to a thin margin in a swing state such as Ohio, the outcome could be delayed for days or weeks.

"The worst case scenario for markets is for a prolonged period of uncertainty if the results produce no clear cut result," said analysts at Credit Agricole CIB in Hong Kong.

Japan's Nikkei 225 index fell 0.7 percent to 8,986.99. Hong Kong's Hang Seng lost 0.4 percent to 22,026.05. South Korea's Kospi shed 0.7 percent to 1,906.29. Benchmarks in mainland China and Singapore also fell. The Philippines PSEi rose 1 percent. Australia's S&P/ASX 200 rose 0.4 percent to 4,476.50.

A key political event also takes place this week in China, the world's No. 2 economy. Thursday marks the opening of the Communist Party congress — the once-in-a-decade forum used to name China's top leadership.

Tom Kaan, head of equity sales at Louis Capital Markets in Hong Kong, said it would be a "cause of concern" if China's new leaders do not take quick action to boost employment, particularly among the ranks of middle-income earners who have lost jobs amid the country's economic slowdown.

"Unemployment is one of the biggest concerns which nobody seems to be focusing on," he said. Investors are also hoping to see progress in the deregulation of China's financial markets.

Meanwhile, shares of South Korea's two largest carmakers plunged after the companies acknowledged overstating gas mileage on hundreds of thousands of cars sold in the U.S. Hyundai Motor Co., the country's largest carmaker, plummeted 7.4 percent and second-largest Kia Motors Corp. sank 6.5 percent.

The inflated mileage was uncovered in an audit of test results by the U.S. Environmental Protection Agency. The EPA's inquiry into the overstated figures is continuing.

Toyota Motor Corp. rose 2.2 percent after public broadcaster NHK reported that Japan's No. 1 carmaker plans to raise its operating profit estimate by around 50 billion yen ($621 million) for the year ending March. Toyota will report quarterly earnings later in the day.

Japanese electronics firms continued to take hits. Sharp Corp. dropped 6.7 percent. Panasonic Corp. fell 4.4 percent. Fujitsu Ltd. lost 4.1 percent.

Benchmark oil for December delivery was up 26 cents to $85.11 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $2.23, or 2.2 percent, to close Friday in New York at $84.86 a barrel — its lowest level since July 10.

In currencies, the euro fell to $1.2824 from $1.2829 late Friday in New York. The dollar was unchanged at 80.42 yen.

  • Your MoneyMore>>

  • Bed bug infestation at money firm PIMCO, report says

    Bed bug infestation at money firm PIMCO, report says

    Wednesday, August 20 2014 6:55 PM EDT2014-08-20 22:55:02 GMT
    A big money management firm in New York City has been hit with a major infestation of bed bugs, according to Fox Business Network. Stock traders who do business with Pacific Investment Management Co., better known as PIMCO, told Fox Business' Charles Gasparino that hundreds of people have been relocated from one of the firm's buildings in New York City to an undisclosed upstate location after reports of widespread bed bug bites among executives and employees.
    A big money management firm in New York City has been hit with a major infestation of bed bugs, according to Fox Business Network. Stock traders who do business with Pacific Investment Management Co., better known as PIMCO, told Fox Business' Charles Gasparino that hundreds of people have been relocated from one of the firm's buildings in New York City to an undisclosed upstate location after reports of widespread bed bug bites among executives and employees.
  • Five Guys offers bacon milkshakes

    Five Guys offers bacon milkshakes

    Wednesday, August 20 2014 6:47 PM EDT2014-08-20 22:47:08 GMT
    Burger chain Five Guys is testing the adage that everything tastes better with bacon. It is rolling out a customizable milkshake program and along with bananas, peanut butter, Oreo cookies, salted caramel, you can chose bacon.  Yes that's right: a bacon milkshake.
    Burger chain Five Guys is testing the adage that everything tastes better with bacon. It is rolling out a customizable milkshake program and along with bananas, peanut butter, Oreo cookies, salted caramel, you can chose bacon.  Yes that's right: a bacon milkshake.
  • Designer clothes at giant thrift shop in NJ

    Designer clothes at giant thrift shop in NJ

    Wednesday, August 20 2014 5:57 PM EDT2014-08-20 21:57:04 GMT
    Like most soon-to-be third graders, Sonja knows what she's looking for when it comes to back-to-school shopping. For kids trying to be fashionable -- and parents looking to keep it affordable -- there's the Ocean County Hunger Relief Warehouse in Toms River, New Jersey. It's basically a huge thrift shop.
    Like most soon-to-be third graders, Sonja knows what she's looking for when it comes to back-to-school shopping. For kids trying to be fashionable -- and parents looking to keep it affordable -- there's the Ocean County Hunger Relief Warehouse in Toms River, New Jersey. It's basically a huge thrift shop.
Powered by WorldNow

KTBC FOX 7
119 East 10th Street
Austin, TX 78701

Phone: (512) 476-7777
Fax: (512) 495-7001

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices