Shares falter again, but Asia poised to end October with near 4% gain

Shares falter again, but Asia poised to end October with near 4% gain

Reuters  | Oct 30, 2020 05:55

Shares falter again, but Asia poised to end October with near 4% gain

By Swati Pandey

SYDNEY (Reuters) - A gauge of Asian shares fell for a third straight session on Friday as jitters over next week's U.S. presidential election and a shaky global economic outlook enveloped markets.

E-Mini futures for S&P500 (ESc1) skidded 1.5%, a signal Wall Street would open in the red later in the day.

In early European trade, the pan-region Euro Stoxx 50 futures (STXEc1) were down 0.4%, German DAX futures (FDXc1) slipped 0.3% while London's FTSE futures (FFIc1) were a shade weaker.

MSCI's broadest index of Asia-Pacific shares outside of Japan (MIAPJ0000PUS) was last down 0.1%, on track to the end the week 1.1% lower after four straight weeks of gains.

Still, the index has risen 3.8% in October so far, and analysts expect this broader outperformance to extend further.

"For a crisis of this scale, Asian equities have performed remarkably well," Citi analysts wrote in a note.

"Within the region, markets with a higher weighting of technology stocks or where the recovery has become more entrenched have outperformed," they added.

"This solid performance can continue, in our view. Valuations are reasonable for an early stage of a recovery while liquidity is generous. There has also been a perceptible drop in volatility in recent months."

The mood on Friday was less positive, though.

Australia's ASX 200 (AXJO) fell 0.5% and New Zealand's benchmark index faltered nearly 1%. Japan's Nikkei (N225) slipped 0.85% and was set for its biggest weekly loss in more than two months.

Chinese shares, which had started marginally higher, eased too with the blue-chip index (CSI300) off 0.1%.

Record numbers of coronavirus cases worldwide and the Nov. 3 U.S. presidential election remained the major focus for investors. On Wednesday, global coronavirus cases rose by over 500,000 for the first time, with France and Germany prepping fresh lockdowns.

The falls in Asia occurred despite a solid session on Wall Street overnight, which was helped by a diet of strong quarterly reports from tech giants and data showing the U.S. economy grew at a record annualised pace of 33.1% in the third quarter.

"Even with the rebound, U.S. output remains 3.5% below its pre-COVID levels. The path towards recovery is much less clear from here, especially as the number of virus cases grows and there are near-term impediments to a fiscal deal," wrote ANZ analysts in a note.

The European Central Bank committed to further action in December to further lend economic support as European nations grappled with a renewed coronavirus outbreak.

Analysts expect an expansion and extension of the ECB's Pandemic Emergency Purchase Programme, a lower deposit facility rate, and even more generous lending terms for banks in December.

The announcement sent the euro (EUR=) sliding to a four-week low of $0.1648 to be last at $1.1679.

The dollar was weaker against the Japanese yen at 104.34 while the risk-sensitive Australian dollar rose 0.2% to $0.7043.

In commodities, oil picked up after hitting a five-month low on Thursday, with Brent crude futures (LCOc1) up 15 cents at $37.80 a barrel and U.S. crude (CLc1) adding 5 cents at $36.22.

© Reuters. An investor uses his mobile phone in front of a stock quotation board at a brokerage office in Beijing

Gold rose, with spot prices climbing 0.4% to $1,874.06 an ounce.

 

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+

Download the Investing.com App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.

Investing.com is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.

';