Equities Mixed As Global Political Concerns Grow

Asian markets are trading mixed this morning as traders weigh the potential implications of another Trump presidency following his recent debate with Biden and the earlier announcement that he will be given immunity from some charges. US equity futures have slipped this morning, giving back some of the gains made in the US session as tech again led the market higher. In local markets, Japanese equities initially opened lower due to concerns over a contraction in US factory activity and potential currency intervention, although we have pared loses and now trade higher for the session, South Korean & Taiwan shares are lower amid global political uncertainty.

• Japanese stocks opened lower as concerns over a contraction in US factory activity dampened demand for trading companies and chemical producers, however as the morning has progressed those losses have been erased and we now trade higher. Higher oil prices boosted resource-related shares, and expectations of a potential interest rate hike by the BoJ supported gains in bank and insurance stocks. However, the possibility of government intervention in the currency market limited the upside potential for Japan's exporters. The Nikkei 225 is 0.25% higher, while the Topix rose by 0.75%.
• South Korean stocks are lower this morning as investors weigh global economic uncertainties and the latest inflation data. Geopolitical tensions involving China and upcoming US elections have left traders cautious this morning, with the likes of Samsung selling off a touch. Banking stocks are higher after media reports said the nation will soon announce tax incentives to encourage listed companies to enhance shareholder returns, with the government announcing more around the “Corporate Value-up” tax incentives soon, according to government officials. The Kospi is 0.60% lower, while the small-cap Kosdaq is down 1.30%
• Taiwanese equities are lower this morning, as TSMC trades slightly lower. Later this week we have local CPI data which is expected to show a slightly increase from the prior month. This morning the Taiex is trading 0.67% lower.
• Australian equities have been rangebound this morning as trader awaited the released of the RBA minutes. The RBA considered a rate hike but judged that keeping the rate unchanged was the stronger option, there was very little reaction to the release although we currently trade near session lows with the ASX200 down 0.15%.
• Elsewhere, New Zealand equities are 0.10% higher, Singapore equities are up 0.16%, Malaysia is up 0.21% while Philippine equities are 0.12% lower,