Asian stocks retreat ahead of US midterms, oil steadies

Asian stocks experienced a retreat ahead of the US midterms, while oil prices stabilized as investors awaited the vote. The S&P 500 declined by 0.5 percent, with tech sector earnings impacting investor confidence. Meanwhile, manufacturing activity in the US increased in October, driven by robust domestic demand. MSCI's Asia-Pacific index dropped 0.9 percent, with South Korean stocks falling as much as 3.8 percent.

The US 10-year Treasury bond yield rose by 2.1 basis points to 4.9 percent. Wall Street's stocks saw a slight gain, with the S&P 500 e-mini futures up 0.1 percent. Apple shares continued to decline, slipping 2.8 percent after-hours due to lower-than-expected gross margins and services revenue growth. US midterm election polls favor the Democrats to win the House, though the Senate remains uncertain.

Prediction markets suggest a 75 percent chance of a Democratic Senate sweep. The US military reportedly struck Iran's Qeshm Island, potentially impacting oil prices. Brent crude prices fluctuated and settled at US$104.72, down 0.1 percent, as hope for US-Iran peace talks eased geopolitical risk. Australian shares increased by 0.1 percent, while Taiwanese shares fell by 1.3 percent.

Hong Kong's Hang Seng Index rose by 0.3 percent. The US dollar strengthened slightly against the Chinese yuan, with the dollar index recovering from a one-month low. Cryptocurrencies saw mixed trading after the Binance hack, with Bitcoin rising 0.5 percent to $77,112.18 and ether falling by 0.1 percent to $2,253.59.