Asian markets slide ahead of US election, Fed rate decision

Asian stocks experienced a decline as traders prepared for increased volatility ahead of next week’s US election and the Federal Reserve's interest rate decision.

Benchmarks in mainland China and Hong Kong slumped more than 1%, leading losses in the region, News.Az reports, citing Bloomberg.

The Topix and Nikkei indexes advanced, boosted by the yen’s recent weakness and gains in the tech sector following a record close for the Nasdaq Composite overnight. US equity futures edged higher in Asia after the S&P 500 closed up 0.2%.

In addition to risks posed by US events, investors in Asia have their eyes set on the Bank of Japan’s decision on Thursday and a meeting by China’s top legislative body to be held Nov. 4-8, where further fiscal stimulus may be announced. Asia’s regional equity benchmark is set for its worst monthly performance in a year.

In late US trading, Alphabet Inc. climbed more than 5% as the Google parent’s earnings beat estimates, while Advanced Micro Devices Inc. sank 7% amid a lackluster revenue forecast.

Just about a week away from the Fed decision, investors are turning their focus to three high-profile reports in the US that look set to show underlying resilience in the economy and a temporary hiccup in job growth. Forecasts are calling for a solid 3% annualized pace for gross domestic product that would match growth seen in the previous three months.

Treasuries are on track for their worst month in more than two years amid signs of economic strength, posturing for the election and heavy supply of new notes and bonds.

Oil steadied after a two-day decline on the prospect for a further easing of hostilities in the Middle East. Gold hit a fresh record early on Wednesday as traders weighed potential market disruption ahead of the election. Bitcoin, seen as a Trump trade, hovered near an all-time high.

Back in Asia, China is in the spotlight after Reuters reported that authorities were weighing approval of 10 trillion yuan ($1.4 trillion) in additional borrowing in the coming years to bolster the economy and address local government debt risks.

News.Az