Asian shares were mostly lower Thursday as caution set in after a retreat on Wall Street driven by a decline in technology shares.
Market players are feeling less optimistic about action from the U.S. Federal Reserve and Congress to help the U.S. economy amid the distractions of the presidential election and the battle over the Supreme Court seat left vacant by the death of Justice Ruth Bader Ginsburg.
Don’t miss:Trump says Kentucky attorney general is ‘handling’ Breonna Taylor situation ‘very well’ and refuses to commit to peaceful transition of power
Risks of a broader selloff of technology shares after a long due correction, Hayaki Narita at Mizuho Bank in Singapore said in a report.
“Add to that, the growing severity of ‘second wave’ risks in Europe, with the U.K. and France seeing a worrying escalation in new cases,” in addition to flare-ups in the U.S., Canada and elsewhere, he said.
Japan’s benchmark Nikkei 225 NIK,
“Weak leads from Wall Street continue to be the bane of Asia markets as regional indices broadly slipped,” said Jingyi Pan, market strategist at IG.
Wall Street experienced more whiplash Wednesday as stocks closed broadly lower, wiping out gains from the day before. The S&P 500 SPX,
The Dow Jones Industrial Average DJIA,
Apart from worries over the pandemic and politics, Big Tech stocks like Apple AAPL,
Johnson & Johnson JNJ,
Part of this week’s early stumble for stocks was due to worries about European governments imposing tougher restrictions on businesses to slow the spread of the coronavirus, which hurt travel-related companies in particular.
In energy trading, benchmark U.S. crude CL.1,
The U.S. dollar cost inched up to 105.44 Japanese yen USDJPY,