Kospi and CSI 300: US Elections in Focus - Asian Investors Act Cautiously
Investors are being cautious ahead of the midterm elections in the US and further quarterly figures from major US tech companies. The shares of chip manufacturers are losing ground.
Asian investors are taking a cautious approach ahead of the US midterm elections on Tuesday. Japanese markets were closed for a holiday. Analysts from ING wrote that "Tuesday is no more than the day before a much more important day." By Wednesday, the market will provide a clue on the impact of the midterm elections. In Seoul, a sell-off of technology stocks on Wall Street is weighing on the markets.
Samsung Electronics' shares fell by 3.2 percent, while SK Hynix's fell by 4.1 percent. Other major stocks saw losses with LG Energy Solution down 3.5 percent, Hyundai Motor by 3.6 percent, and Kia by 1.3 percent. Caution prevails on Chinese exchanges too. Chinese regulators announced measures on Monday to stabilize capital markets, including swap transactions and a credit facility to facilitate stock buybacks by listed companies.
"These measures fell short of expectations," said Chen Jiande, a fund manager at Fujian Tianlang Asset Management Co. "Many investors in the battered tech stocks are taking advantage of any recovery to exit."
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